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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era -- Ignore unavailable to you. Want to Upgrade?


To: porcupine --''''> who wrote (1496)3/29/1999 2:11:00 PM
From: Freedom Fighter  Read Replies (1) | Respond to of 1722
 
Porc

>>Too much domestic demand for imports or too much foreign demand for $$'s? I think
the following, though anecdotal, is relevant:] <<

That was an interesting article but in some ways it suggests that we should have a growing trade surplus and not a growing deficit. The reason I say this is that if it is really tough to start a business in Japan, and we have all these technological advantages (which we do), we should have enormous advantages in trade over everyone. We should then be using those advantages to export all kinds of stuff all over the world in larger quantities than we are importing others. Since we certainly have those advantages at present and we are still importing much more than we are exporting, it sounds like demand. At a much simpler level, our consumption levels as a % of GDP suggests this too.
I think this is one of those questions without a provable answer. I just think there is more empirical evidence of demand.