HYPERINFLATION VS DEFLATION

Quote from Ed Breen:

So you see that the process is converting a financial asset, investment abroad, into a tangible domestic 'repair.' You end up with less financial assets and the same tangible assets...so you are poorer.
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No the funds are repatriated instead of being invested abroad. If the funds are held abroad then they are no use to the active economy. The asset has not been lost as you claim it has become used in the domestic economy rather than abroad.

If you own a tractor that is used in China to farm Chinese farms then although you own the tractor you are not the recipient of all the wealth the farm creates. If the funds are a means of production, in this case repair, then you have shifted the production to the native country the funds originated.
 
Breen. Have you read The George Soros Lectures at the Central European University (Amazon, a few bucks.)

If you haven't, I'm guessing you, of all people, will find it extremely interesting, and also I suspect you will find much to criticize. (I should tell you that I think Soros is not only brilliant, but correct!)
 
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