SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Foreign Affairs Discussion Group
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Hawkmoon who wrote (161234)4/29/2005 12:45:38 PM
From: neolib  Read Replies (1) of 281500
 

Let's imagine the imbalance of trade between urban and rural economies. Or we can imagine the imbalance of trade between entire regions of the US, such as California versus the South.f

I don't follow this one. Urban/rural, or regions of the US all are under one government, one set of rules, same currency, free movement of goods, services, and people. If one region would normally act to depress the currency, and another region might be bolstering it. The net soundness of the financial system is the some total. Rather different from the $ vs other world currencies.

I agree with much of the rest of your post. However, this part:


In sum, T-bills are a respository for capital for which these exporting countries cannot find better investment vehicles.

is the basic difference wrt to what you and I think. Delete the term exporting in the above sentence, and IMO they could find better investments. Since they are exporting, they can't afford not to lend to the US consumer. This is where I see the danger lurking.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News