Quote:
Originally Posted by GreyWolf
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. |
Ofcourse you are right, im just saying that no country will be rich if your export isnt bigger then the import. And ofcourse it can be bad a year, two years, even three years but ofcourse if it continues like this for the US you will end up being a poor country.
But why the US is rich is because the export has been so much higher then the import for so long. Ofcourse it will change, its impossible that most rich countries will be as rich as before (OECD countries) because production etc etc is moving to cheaper countries where the workers doesnt go on strike and stuff. Thats normal. Asia is the future.