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To: The Vet who wrote (57694)	8/30/2000 1:41:32 AM
From: Hawkmoon	Read Replies (2) \| Respond to of 116763

The rest of the world is subsidising the US consumer by that amount. Seems we are in the same situation that we were after WWII, where the US provided the markets for those devastated or recovering economies. The US economy made up 50% of the global economy in 1945. That means that 50% of the world's GDP was wrapped up in "subsidizing" the US consumer. Something you should ponder Vet. Don't get caught up in the rhetoric about the trade deficit. It is irrelevant so long as the US continues to provide the best return for an investor's capital in comparison to all other alternatives. On a micro-economic level, you can see where many cities have trade deficits with their rural bethren. It's not that the city dwellers wouldn't like to sell them stuff, but the fact that the farmers standard of living doesn't permit such luxuries as the city folk get to enjoy. Now overlay that on a global scale and you'll understand what I'm talking about. What will make this scenario change is when Japan, Europe, or China, restructure their economies to the point where they can challenge us as recipient for the world's capital. Regards, Ron