Re: Balance of payments
- From: "The Trucker" <mikcob@xxxxxxxxxxx>
- Date: Fri, 15 Apr 2005 07:24:58 -0700
"Matt Timmermans" <mt0000@xxxxxxxxxxxxxxxxxxxxxxxxxx> wrote in message
news:cqH7e.21204$8i6.781718@xxxxxxxxxxxxxxxxxxxxxxxx
>
> "The Trucker" <mikcob@xxxxxxxxxxx> wrote in message
> news:d3md3t02dn6@xxxxxxxxxxxxxxxxxxxx
>>
>> "Matt Timmermans" <mt0000@xxxxxxxxxxxxxxxxxxxxxxxxxx> wrote in message
>>> On the other hand, the current account deficit is complained about as if
>>> it was some sort of gift to the rest of the world, when, in fact, it is
>>> just the opposite.
>>>
>>> --
>>> Matt
>>
>> The deficit is not a "gift" to anyone.
>
> Oops. I wanted you to take the opposite of "gift" instead of the opposite
> of "rest of the world", i.e., I meant to imply that the rest of the world is
> being taken advantage of.
>
>> It may well be that the dishonesty
>> of the USA in this transaction makes it appear as though we are
>> getting something for nothing, [...]
>
> Oh, not you and me, no... But America as a whole certainly does. It gets
> real goods and services in exchange for the Fed's markers, the real value of
> which can fall at any time, and certainly will fall if everyone starts
> trying to buy stuff with them, unless America decides to start producing a
> lot more than it consumes.
>
>> And if you extend this mess to the point where you recognize
>> that the Chinese and the Japanese have _earned_ the right to control
>> or "best congress money can buy" then you have yet another
>> problem.
>
> <facetious> Since this transfer of power isn't relected in the current
> account, the capital account, or anything else that the accountants measure,
> I doubt that it exists at all. </facetious>
Why do you think the Chinese would accept something that has no
value? Surely you don't think they are totally stupid, do you?
>> The most striking of this is the lack of means by which
>> we can collect taxes on incomes of foreigners. They own the assets
>> and they realize the income from the assets and we have no tax base
>> but for a tax on labor. Not a good scenario at all.
>
> The assets they own as a result of their current account surplus are just
> dollar-denominated receivables. They can be devalued at any time by
> inflation, or to avoid the direct domestic effects of inflation, by tariffs.
Yet we see the Fed raising interest rates and babbling about taxes on
consumption. And we see every Republican econoliar spouting that
import tariffs are Satanic.
.
- References:
- Balance of payments
- From: Curt
- Re: Balance of payments
- From: Mason A . Clark
- Re: Balance of payments
- From: William F Hummel
- Re: Balance of payments
- From: Matt Timmermans
- Re: Balance of payments
- From: William F Hummel
- Re: Balance of payments
- From: Matt Timmermans
- Re: Balance of payments
- From: The Trucker
- Balance of payments
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