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Politics : Bush-The Mastermind behind 9/11? -- Ignore unavailable to you. Want to Upgrade?

To: James Calladine who wrote (11748)	10/6/2005 11:50:26 AM
From: Don Earl	Respond to of 20039

Off topic. As I understood the point of the article to be, the argument was that US companies are producing less, are less competitive in foreign markets, and as a result, the dollars circulating outside the US have found their way into the hands of foreign entities which places them beyond the control of US entities. The entire basis for that contention is the so called trade deficit which only counts imports and exports at the US boarder. RE: "To me it looks like they cause the buildup of Eurodollars or Petrodollars (however you want to term them) outside the U.S.A." Wasn't the article discussing the build up of US dollars outside the US? With the slant being this is a bad thing because the US isn't accumulating foreign currencies as a result of trade to buy them back? That out going production is being exceeded by in coming production? I don't believe that to be true. The reason I don't believe that to be true is that for the past several decades there has been a pattern of US companies shifting their foreign operations to their foreign markets. The US companies are still producing goods and services in demand by foreign buyers, and in exchange for foreign currencies. The only difference is the goods and services aren't being counted as exports, as the transactions don't crosses US boarders. Basing the balance of trade solely on fewer transactions crossing US boarders would be about like saying a retail store's business is down because fewer women in pink hats are frequenting the business.