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

To: carranza2 who wrote (93507)	8/14/2012 1:35:17 PM
From: elmatador	Read Replies (1) \| Respond to of 219465

Surplus is trade suplus: Exports-imports. If positive is called a surplus. If negative is called a deficit. If you have a surplus you can have a capital outflow. In the case of China the outflow is Foreign Direct Investment into toher countries as exemplified by the previous postings. Brazil had trade surplus whose proceeds were used to pay its debt (then countries were required to pay debts not like today in the EZ). The proceeds that went to pay the foreign creditors were considered capital outflow. The higher the interest rates, thet higher the capital outflow was. The process ios called fleecing. Not like today that debtors don't pay even when interest rates are negative.