Trade Deficit

Quote from saxon22:

History Lesson 101

I. Reasons why the Berlin Wall was built:
1. Spying activities by the Americans. Hords of spies were able to just walk into East Berlin and then spread all over East Germany. It could be compared to Manhattan being in the possession of the Soviets during the Cold War. Do you think the US would allow free movement between Manhattan and the rest of the US????? So why do you think the Soviets would be foolish enough to just allow CIA to freerly roam East Germany???? Come on think a little bit.
2. Counterfeit currency was transported from the West to destabilize East Germany. Since you are trading, I will not have to explain to you the dangers of having your country flooded with perfectly counterfeited currency printed on the best machines available by your enemy.
3. Constant trickle of East Germans leaving for West Germany. Thanks to generous US economic help which was given to most Western European countries after WWII to stop the local population from electing lefitist governments, the West German standard of living was already higher then in the East. Also what once was East Germany was always less industrial,less developed (by German standards) than West Germany and it was only natural that West Germany would do better right off the bat. Moreover, many Germans that stayed in East Germany were from the territories awarded to The Soviet Union and Poland after WWII, so for them, it was not so difficult to move further west, they were displaced to begin with and once they noticed that life in the west would be easier they picked up again and moved west.

Speaking of walls: the one being build between US and Mexico sure looks interesting. Most Mexican are moving to the US because their country is pure capitalism: no independent unions, gov. lets business do whatever they want, you know typical laissez faire, minimum wage is non existent, education is substandard, very little help coming from the government to the people, you know PURE CAPITALISM. You can open up any kind of business, pay workers $5 a DAY, no health insurance whatsoever, no taxes to pay, no unions, no pension, no job protection, no environmental issues to worry about ... and the end result is....Mexico. So they move to the US where pure capitalism has been replaced after the Great Depression, when the government and the rich elites realized that in order to keep the people from making another Russian Revolution, some social protection needed to be built in, hence you get S.S. and other programs designed to help people.
Also look at West Germany and their social system. They provide a lot more benefits to their poor, and their workers and still or (here is a radical thought) maybe because of those benefits, they produce $150.000 MB cars and have a higher standard of living (in general) than people in the US. END OF THE LESSON
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I guess I'm not sure where to start. This is probably one of the most moronic posts I've ever read.

If you're not able to differentiate between one wall that is meant to keep people out and one wall that is meant to keep people in, than I'm not sure there can be any discussion.

And by the way, you can't really say that there is a WALL between the US and Mexico. Hundreds of illegals are streaming in as I type this message.
 
Quote from saxon22:


Regulations in Mexico? There are not enforced, you can bribe your way out of anything and by the same token, you can get anything done if you grease the palm a little bit.
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Thats because dishonesty is a market solution to a government created problem. People can come up with ways to try to get around laws but there is a cost and by definition a waste of resources.

That makes a much worse business enviroment where people has to cheat together or the chain falls. Imagine your a japanese shop owner and you have the japanese mafia charging you a $2000 fee every week or they trash your shop, you have a huge incentive to leave. In mexico there is not a mafia but if you need to bribe, pay for false documents, cheat on your taxes, face regulatory burden otherwise etc. You are in fact being taxed and the threat is jail if you stop. Thats a huge incentive to leave.
If you cant see how thats the case then I wish you well on your marxisist future.
 
History Lesson 101

I. Reasons why the Berlin Wall was built:
1. Spying activities by the Americans. Hords of spies were able to just walk into East Berlin and then spread all over East Germany.

One of the stupidiest shit I have ever read on Internet.
That's why I had to sneak out of the country illegally because those damn American spies you retarded idiot.
 
History Lesson 101

I. Reasons why the Berlin Wall was built:
1. Spying activities by the Americans. Hords of spies were able to just walk into East Berlin and then spread all over East Germany.

One of the stupidiest shit I have ever read on Internet.
That's why I had to sneak out of the country illegally because of those damn American spies you retarded idiot.
 
Quote from ShoeshineBoy:

This article does (imho) a nice job of debunking the whole idea that "the trade deficit is a malignant cancer" about to bring down the US economy.

Let me know if you disagree for some reason...


http://www.realclearpolitics.com/articles/2007/01/losing_sleep_over_the_trade_de.html
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The issue is much more complicated than these Economists mentioned in the paper think, including its author.

At a fundamental level, economists fight because Economics is not a strict science. Could you imagine two engineers fighting over the valus of the average speed of a car that covered 100 miles in one hour? But economist with fight over everything since there are no basic laws in economics that have the status of a law of nature.

I agree that trade deficit is not necessarily debt. It often helps an Economy to grow. The author is correct when he points to those journalists who scream loud about the deficit growing and calling it debt.

But there are threats that can lead to dollar devaluation , an eventual rise in imported inflation and imbalances in demand and supply. This can result in long term stagflation and at the end a depression if things get worse.

Ron
 
Quote from ronblack:

The issue is much more complicated than these Economists mentioned in the paper think, including its author.

At a fundamental level, economists fight because Economics is not a strict science. Could you imagine two engineers fighting over the valus of the average speed of a car that covered 100 miles in one hour? But economist with fight over everything since there are no basic laws in economics that have the status of a law of nature.

I agree that trade deficit is not necessarily debt. It often helps an Economy to grow. The author is correct when he points to those journalists who scream loud about the deficit growing and calling it debt.

But there are threats that can lead to dollar devaluation , an eventual rise in imported inflation and imbalances in demand and supply. This can result in long term stagflation and at the end a depression if things get worse.

Ron
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Out of control, entitlement spending by our government is a far greater threat to our economy as Bernake pointed out today.
 
Quote from Daal:

Thats because dishonesty is a market solution to a government created problem. People can come up with ways to try to get around laws but there is a cost and by definition a waste of resources.

That makes a much worse business environment where people has to cheat together or the chain falls. Imagine your a japanese shop owner and you have the japanese mafia charging you a $2000 fee every week or they trash your shop, you have a huge incentive to leave. In mexico there is not a mafia but if you need to bribe, pay for false documents, cheat on your taxes, face regulatory burden otherwise etc. You are in fact being taxed and the threat is jail if you stop. Thats a huge incentive to leave.
If you cant see how thats the case then I wish you well on your marxisist future.
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If that is the case then why each year there are more and more US and Asian companies doing busies in MX setting up factories all over the place?????
 
Quote from Cesko:

I guess I'm not sure where to start. This is probably one of the most moronic posts I've ever read.
Definitely.
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Start by presenting evidence to the contrary.
 
Quote from Cesko:

History Lesson 101

I. Reasons why the Berlin Wall was built:
1. Spying activities by the Americans. chords of spies were able to just walk into East Berlin and then spread all over East Germany.

One of the stupidiest shit I have ever read on Internet.
That's why I had to sneak out of the country illegally because of those damn American spies you retarded idiot.
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Perhaps you should re-visit US history books that are written for people who have successfully completed high school education. Getting your info from internet is not always the best approach to real learning and the quality is not generally of the highest caliber. Branch out baby, branch out.

As always when one has no arguments to present name calling will generally substitute for facts. So predictable!:( :(
 
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