Quote:
Originally Posted by xClips Jim
He has a point, although bankrupt is obviously not correct. We are extremely indebted is the more realistic problem.
Why are we indebted? We take in less than we spend. The United States avoids balance of payment issues because the dollar is the world's reserve currency. That won't last. When it goes - boom! Better to prepare now...
Or, we could talk about idiotic baseball analogies where for some reason the baseball team is required to play with the other team.
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IMO, it's overblown Jim. US trade balance has changed very little since the early 90s.
Moreover, running a neg trade balance is not necessarily bad either. Heck, a positive trade balance could very bad, and has proven so before. And a neg balance can be good, like canada runs a trade imbalance and in return their standard of living is higher.