Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: KyrosL who wrote (60785)	2/7/2010 2:15:28 AM
From: elmatador	Respond to of 218023

The uniqueness of China "huge trade surplus and investing hugely at the same time" is the result of artificially lower currency. Thus not importing much neither sending Chinese to ave fun abroad. Brazil has a more balanced economy: The little % that it is trade, (about 15% of GNP) it buys capital goods, consumer goods and send tourists abroad. We have to say in defense of the Chinese that due to the lower GDP per capita incomes they are investing in a different set of goods and services than Brazil. That is because they are still urbanizing. Brazil has urbanized already.

To: KyrosL who wrote (60785)	2/7/2010 11:50:50 AM
From: Cogito Ergo Sum	Respond to of 218023

Sure, but there is a difference between a country with few natural resources say that is constantly boom bust and adding to its trade deficit just to get by and a western country like the US or Canada where consumption is profligate.. both can will have trade deficits, Canada here also a special situation.. where we consume like Americans but have a small relative population and far more resources than we need for our own uses.. The consumption required to really stimulate is over and above subsistence ... a redirection of savings.. so a trade deficit doesn't really tell the tale IMO... a clue maybe ... but not the whole story.. that's all I'm suggesting.. A trade deficit does not automatically denote that type of consumption.. TBS