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Strategies & Market Trends : ahhaha's ahs

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To: ahhaha who wrote (13906)5/19/2009 4:59:51 PM
From: rich evansRead Replies (1) of 24758
 
Since our current account deficit must equal our capital account surplus, it makes no difference what China and Brazil do. And it makes no difference what China does with its dollars- that is buy oil, commodities with them. Eventually these dollars must come back the US and get invested somewhere. And this investment helps make up for our huge budget deficits which detract from national savings and investment. Less chinese investment in US recently is because the trade deficit has decreased from 60bill a month to 20bill a month. Not sure about Chinese share. But our saving rate has gone up I read to 5% which makes up for the reduction in the imported capital account surplus. The chinese/brazil deal has no effect on us and is small potatoes compared to our imports of almost 2.8 trill dollars in goods a year and our exports of over 2 trill. Don't worry be happy.
Rich
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