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To: GST who wrote (135930)12/17/2001 1:01:19 AM
From: Bill Harmond  Read Replies (1) | Respond to of 164685
 
I agree with everything you say here.

Where you and I part company is whether we think our balance of payments is a bad thing. If we build wealth faster than we incur debt (which we do and have) then I think we're OK. To me the borrowed money isn't being burned, it's being put to work. America has been a debtor nation more often than not for our entire history.

There is plenty written on both sides of this argument. I can point to the Japanese who exhibit all the virtues you extol, yet they're going through something like their fourth recession in 10 years.



To: GST who wrote (135930)12/17/2001 1:28:08 AM
From: Bill Harmond  Read Replies (1) | Respond to of 164685
 
Here I found something out of the Kansas City Fed that deals with these issues. I haven't taken the time to read it yet.

kc.frb.org