It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
Originally posted by BANGINCOLOR
...............and this has what to do with the war on terror??????
Originally posted by cjf
A nation's trade deficit is determined and driven by the flow of investment capital funds into or out of the country of question, in this case the US. And those flows are determined by how much the people of said nation save and/or invest--two variables that are marginally, and insignificantly affected by trade policy. The nations with high investiture quotents are attractive to its' investors, not a bad sign at all. And btw, why would you want to run a surplus! Brush up on Hume and Adam's for some history.
Very simply put, it is an accounting equation, the T-bar equates and reads as such:
Savings(S) -less- Investment(I) equals Exports(E) -less- Imports(I)
detailed information pages.stern.nyu.edu..." target="_blank" class="postlink">here
If you do not move the capilal account pmt into the ledger later one will currently recieve a negative amount...the 'deficit', a simplification.
A trade 'deficit' reflects the ecomomic prowess of the country indicated, as case of the US it is insatiable and huge. The US is purchasing goods from around the globe, good, the US is amassing wealth, keeping its' domestic prices in line by providing competition (another topic) all the while capital investment is driving this negative number. Very, very far from dreary for the US.
Originally posted by Blobber
Also try to understand why Steven Roach, chief economist of Morgan Stanley (one of the biggest investor banks) stated -in his own words- we will have a 90% chance of an economic armageddon in 2005. It's no coincidence that BIG investors such as Warren Buffett has put billions, and billions in foreign currencies
[edit on 14-4-2005 by Blobber]