Hi Mark, I had seen this reasoning before and thought at the time (I am about 60% serious) ...
1. True: <<Savings - Investment = Exports - Imports>> if in a self-contained two party system without exogenous developments such as seriously competing exporters, importers, currencies, asset classes;
2. Even if true for a multi-party system, will only be true for a while, until demographics changes;
3. This was probably part of the consideration in (a) pushing the Arab petro-dollars back out into the greater system by hook (Porsche, Filipino labour, tanks and planes) and crook (wars), (b) pouncing on Japan on the subject of free trade, (c) US poopooing Euro and such;
4. The 'perfect' system is always managed to be operated to the breaking tolerance, in all of history, without fail,
5. and thus the extreme danger facing all of us (no place to run), because danger index = probability of dangerous trigger tripping x potential direct and splash damage resulting from tripping;
6. We now collectively live in a house that uses an atomic bomb (slight hyperbole, makes a good image anyway) as the fuse for the television set in the bathroom, next to the tub, while the California power folks are repeatedly opening and closing the big circuit breaker in the sky.
Chugs, Jay |
