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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (367154)	1/16/2008 8:23:55 PM
From: Road Walker	Read Replies (1) \| Respond to of 1573437

I've heard economists link the balance of trade deficits with a declining dollar but it doesn't make sense to me. Since I was a kid, the US has had a negative trade deficit. Back then, they would say that we had surpluses when it came to services and that's how things balanced out. Frankly even as a kid, I thought that was BS. It was and is BS. The "breadbasket of the world" has had an agricultural trade deficit for 3-4 years. When more money goes out than comes in, we are exporting our wealth... that's why ME and Asian countries are buying our financial institutions on the cheap. BTW here's the chart I used for the dollar: tfc-charts.w2d.com Look longer term, back to 2000. If you want to borrow $100 and only make $100, and owe 20k but have 40K worth of assets, then I probably would lend you the money. That's the thing people seem to ignore in this whole argument........the US has incredible assets......probably the best in the world. That's the only reason Bush has been able to get away with his prolific and mindless spending. Bush HASN'T been able to get away with it. And we've been mortgaging or selling those assets for years. I think we have maximize the qualities and products that the Indias of the world can not produce with their cheap labor. I agree. But it isn't happening. The reason we have trade deficits is their stuff is worth more than out stuff. We're falling way behind. I disagree......you can't pay debt back if there is less revenue generation. The Feds cutting the interest rates will stimulate the economy which will produce the revenue that can be used to pay debt. Interest rates have been dirt low for years... it's not working. There is a dramatic shift in value going on... the Asian and ME countries make the stuff we need/want.