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Politics : High Tolerance Plasticity
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To: Sun Tzu who wrote (23130)10/27/2005 11:44:33 PM
From: schrodingers_cat  Read Replies (2) of 23153
 
What I meant was that if there is under-priced capital on offer then the US economy will borrow it.

You realize of course that trade balances are influenced by currency exchange rates and that under normal conditions exchange rates should move to correct trade imbalances? The efficiency of production is beside the point.

China needs to focus on raising the living standards of it's citizens rather than running huge trade surpluses with the US.
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