Quote:
Originally Posted by Shakula
Everyone who thinks this is a good plan doesnt know anything about how economy works. Why is american a rich country? Because your export is so much higher then the import. You need the rest of the world more then the rest of the world needs you. Same goes with all the other rich OECD countries.
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Well.. there lies a major part of the problem Shakula
The US does not export higher than it imports and that is the reason for massive trade deficits over at least three decades now - and the constantly increasing debt problem.
Sure, agree that should not be the case and it's not the same as all other OECD countries - they generally balance their books and have reasonable cred. This is reflected in currency exchange - and also illustrates why the US dollar is weak.
US manufacting industry is weak and, as a nation, is not in a postion to offer product at a competitive price to help the balance of payments. In reality, the US is a consuming nation and consuming beyond it's means and borrowing from others to sustain that level of consumption. "Rich" is relative
It's not just my
- this pattern is not sustainable and the effects have probably started showing already. Time will tell.