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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (54679)	6/20/2000 11:37:00 AM
From: Sweet Ol	Read Replies (3) \| Respond to of 99985

When I took Econ in collage (a half century ago) I learned about the dangers of the trade deficit that we were starting to run up. I have been worrying about it for 40 some odd years and finally I have concluded that the world has changed so much that the trade deficit does not apply like it once did. Maybe we need to update the theory. As we become more and more of a service economy we continue to export services which don't get measured as part of the trade. I agree that it is worrisome, especially the recent spurt. But I just don't understand the cause and effect between trade deficits and our economy. Best to all. JH