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To: Freedom Fighter who wrote (1801)6/16/1999 4:30:00 PM
From: Paul Berliner  Respond to of 3536
 
Hi Wayne,
I just want to add that the popular misconception of a negative savings rate is further refuted by the fact that tens of millions of workers have anywhere from $25 on up deducted from each paycheck for contribution to an employee-sponsored retirement plan.

I think the negative savings rate issue has been abused by the media simply for its shock value.



To: Freedom Fighter who wrote (1801)6/16/1999 8:42:00 PM
From: Henry Volquardsen  Read Replies (1) | Respond to of 3536
 
yes and no

If I buy a Honda, and Honda takes the dollars and buys a new U.S. bond. That's 'x' amount of credit funded from external savings in dollar form instead of from let's say my savings.

yes

The amount of demand for USD over and above the current account deficit is offset.

if this is in reference to the Honda example then it is not demand over and above the current account deficit. It is demand equal to the current acount deficit. If Honda sold the Honda for $20,000 but had a desire to hold $30,000 in US bonds the additional $10,000 would be demand over and above the current acount deficit.