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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 231.35+0.1%Jan 21 3:59 PM EST
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To: GST who wrote (159746)1/5/2004 12:00:55 PM
From: Oeconomicus  Read Replies (1) of 164684
 
I was even thinking of writing to American Express and telling them not to worry if I run up a mountain of debt on my credit card because I have been told that the balance is self-financing.

Genius, cash and credit cards are not the same thing. I hope you keep that in mind when you're living your expensive Hawaiian lifestyle.

You are so caught up in your "it'll all come crashing down tomorrow" rhetoric, that you can't grasp a simple concept like the current account balance. It is very simple, but I'll simplify it even more so you can understand by using a two-party trade illustration. I buy a nice Japanese camera with cash. I get the camera and Canon gets $1000. Done. My balance of payments is -$1000. Debt doesn't enter the equation AT ALL.

Throw in exports, earnings on investments, and foreign aid and you've got the current account balance. No financing included or required.

Now, can you or can you not find the borrowing of money in the current account balance calculation? Can you or can you not show how the purchase of imported goods or services for dollars necessitates financing?

Lastly, here's a quick tip on constructing an argument - you can't prove an assertion simply by restating it and claiming "everyone knows it to be true." That's an interesting combination of petitio principii - begging the question - and argumentum ad populum - appeal to popularity - but it is not a logically sound argument. And throwing in a little ad hominem may make you feel big, but it doesn't help your case - it weakens it.
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