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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 382.87-0.8%Nov 13 4:00 PM EST

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To: TobagoJack who wrote (147182)3/20/2019 12:43:04 PM
From: Maurice Winn  Read Replies (3) of 217752
 
Trade balance worries are silly. Money movements are not bilateral. I bought a house yesterday. The seller buys nothing from me. Our trade balance is 100% in favour of them it doesn't matter at all.

If China buys nothing at all from USA it doesn't matter at all. They have to spend their US$ on something . That's all money can do = be swapped for something else.

China will buy oil from Saudi Arabia or A380s or milk from NZ or spices from India or go on Safari in Africa to buy diamond mines or build Cyperspace. That will use their US$.

The people around the world will have to do something with their US$.

Saudi Arabia will buy fighter jets. Africa will buy a billion iPhones and a million km of optical fiber. And a megaton of mining and farming equipment. I will buy servers to run the world's new money supply. And some fancy retina laser welding machines . And. DNA reconstruction technology. And cancer treatments.

The money goes around in a trillion ways.

Trade imbalances are of no interest.

Mqurice
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