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To: mishedlo who wrote (283)1/20/2003 2:07:09 PM
From: yard_man  Respond to of 1210
 
Mish --

a good portion of those "consumption" $s flowing OUT of the US come back IN as "USD investments." That will slow or -- perish the thought, even reverse ...

The point is -- folks abroad are NOT on a consumption binge now. They are simply buying what they "need." We've got MUCH further to retrench and that will be the driver of the future trade deficits, IMO. A shrinking trade deficit will NOT be good for our economy or theirs.

I don't think the trade deficit will improve because exports will grow -- I only think that imports will slow much faster than exports.



To: mishedlo who wrote (283)1/21/2003 12:43:41 AM
From: smolejv@gmx.net  Read Replies (1) | Respond to of 1210
 
>>did nothing to raise corporate profits because of deflationary pressures from China.<< translated my way 'were it not for cheap imports, American manufacturing would take care of J6P's spending intentions'.

How come this has not occured? Well, one of the reasons is surely the money went big time into spending instead of into net investment. One cant have a cake (earmark money for CapEx) and eat it too (spend it).

RegZ

dj