I don't understand this line of reasoning. We are in a
dollar freefall,we don't have a gold standard,and we
make nothing anymore. I'm just going to have to rely
on my own intuition and believe that this is very
bad,and we'll see what happens.
Steve P.
--- Dustin Williams <dustinewilliams@gmail.com> wrote:
>
> > spend eventually comes back to you. Some actually
> say that a 100%
> > trade deficit with every other country would be
> the best possible
> > scenario. This would be like buying goods and
> services from another
> > country, and they never purchased any of your
> goods and services,
> > ever. You get all of the goods and services that
> you need, without
> > having to give your own goods and services in
> return, all you have
> > given the other countries are little scraps of
> paper with pictures of
> > dead presidents on them, which are really cheap to
> produce. If that
> > country never buys any of your goods and services,
> you never have to
> > send anything of material value outside your
> border. You've got the
> > benefit of the other country's goods and services,
> and you get to keep
> > all of your own too!
> >
> One problem with this kind of scenario is that those
> pieces of paper
> with pictures of dead presidents become worth
> increasingly less
> against, say pieces of paper with pictures of a
> queen, and in the end
> lead to high rates of inflation and raises the price
> of these goods
> that we are importing.
>
> It's a bit more complicated that it was in the days
> of the gold
> standard, but the principle remains the same, print
> more money and it
> becomes worth less.
>
>
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