GDP = Gross Domestic Production right?

[Martinghoul]

Quote from morganist:
In any event I think the GDP of western countries is held up by reserve currency status. The demand for the currency as a safe investment vehicle makes the currency artificially high and enables them to buy enormous amounts of goods cheaply. The makes the GDP hyped.

Well, it is what it is, right? I don't see a practical approach that would allow one to adjust for the "reserve ccy" issue without making all sorts of completely arbitrary assumptions. Moreover, there's all sorts of other well-known issues with national accounting, but that's life, innit? Nothing's perfect in this funny world of ours. I might add that my personal favorite at the moment is the measurement of the contribution of financial services to GDP. I really like the stuff that Andy Haldane at the Bank of England produces on the subject.

 

[Martinghoul]

Quote from KINGOFSHORTS:
The assumption that spending 1 dollar means 90 cents of that spending is from something produced here is an incorrect assumption.

Again, as I mentioned earlier, there's no such assumption made when calculating GDP using the expenditure approach. The (im)balance of trade is captured by the last term in the famous national income identity.