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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: KyrosL who wrote (20598)7/29/2007 12:41:47 PM
From: carranza2  Read Replies (2) | Respond to of 220215
 
The huge China surpluses and huge US deficits simply show that the huge profits of the smiley curve are largely extracted from the American consumers.

Only partially, I should think, because lots of Chinese-manufactured goods are sold by US corporations abroad.

Even to the extent that Smiley is paid for by the US consumer, I wonder if that makes any substantial difference. Profits are made, and are recirculated in the economy with the multiplier effect still in place.

Smiley might go a long ways towards explaining why the trade imbalance has not bankrupted us long ago.