Are Countries With Trade Surpluses Economically Stronger?

[EdwardBaiamonte]

[QUOTE="expat_panama, post: 16976693, membe]No it [trade deficit]doesn't, it means people are willing to buy from you what they want --and that's how it's always been.
.[/QUOTE]
No,a deficit is when you want to buy more from them than they want to buy from you.

It's considered a very bad because often it means you make junk and they make quality. Americas deficits are particularly troublesome because we run them with low-wage China and high-wage Germany.

The solution is to provide supply side incentives to American industry. That means primarily elimination of taxes on business altogether and drastic reduction of regulation.

 

[EdwardBaiamonte]

Americans are good at that.

It's far better to be good at making cars jets tanks trains computers heavy equipment electronics tooling trucks etc. Jamie Diamond is worried China will start buying our banks and in effect control of our country. They are good at using their dollars to hollow out America .

 

[expat_panama]

...That's what a trade deficit is, one year I've got nothing and this year I've got $1K in gold...

...It's far better to be good at making cars jets tanks trains computers heavy equipment electronics tooling trucks ...

Hey, it's a free country and if you really think so then you can go right ahead and make and sell all those things all day long --enjoy! I like having a free country and I'm not too hot on the idea that the State has to be in charge of what I do for a living and what I'm allowed to spend my money on.

Some folks say that while freedom's all well and good that it's better to be patriotic (their version) than free and we'd be better off w/ import tax hikes. That's when I look at how strong nations are when they raise taxes on imports--

--and I decided that I did not want the U.S. be like those countries w/ the highest import taxes.

 

[expat_panama]

No it [trade deficit]doesn't, it means people are willing to buy from you what they want --and that's how it's always been...

No,a deficit is when you want to buy more from them than they want to buy from you...

Let's get together on what they call the Balance of Payments, it's the fact that when foreigners buy stuff from Americans they have to pay in dollars, and they get those dollars when they sell stuff to us for dollars. It has to balance becuase if it didn't then the price of dollars would swing wildly as folks either dumped unwanted dollars or bid them up to the sky. Right now the dollar's the same w/ foreigners that it was four decades ago. Payments balance. We sell the same value of stuff that we buy.

Are we together on this or would you care for links to sites that explain it better?

 

[EdwardBaiamonte]

I like having a free country and I'm not too hot on the idea that the State has to be in charge of what I do for a living and what I'm allowed to spend my money on.

I agree so why are you pointing it out??

 

[EdwardBaiamonte]

We sell the same value of stuff that we buy.

of course, but the issue is what we sell. We sell the Waldorf and they manufacture and sell everything. This is very bad. It leaves our country without jobs and expertise and thus in perpetual decline.

 

[EdwardBaiamonte]

--and I decided that I did not want the U.S. be like those countries w/ the highest import taxes.

agree, but more importantly we must eliminate the corporate tax and many regulations so our corporations can compete successfully.

 

[EdwardBaiamonte]

--and I decided that I did not want the U.S. be like those countries w/ the highest import taxes.

agree, but more importantly we must eliminate the corporate tax and many regulations so our corporations can compete successfully.

but this in no way means a trade deficit is a good thing

 

[expat_panama]

...the issue is what we sell. We sell the Waldorf and they manufacture and sell everything. This is very bad. It leaves our country without jobs and expertise and thus in perpetual decline.

That's how the story goes, and when we learn the facts we find out that we've been fed a fairy story. A hard look at actual historical bank balances and payrolls shows how the Trade Balance really does affect our total private net worth:

• 1992 to 1999 - Trade deficit grows strong and our total private wealth almost doubles from $24T to $45T.
• 1999 to 2003 - The trade deficit pulls back a bit and wealth creation stops dead in its tracks.
  
• 2003 to 2007 - Trade deficit resumes growing and our riches continue to soar up to $70T.
• 2007 to 2009 - The protectionists see a collapsing trade deficit that costs Americans $18T.
• 2009 to now - Trade deficit growth starts up again and stumbles, wealth creation resumes at a slower rate.

The reason is that Americans can construct buildings and set up businesses all day long and we never run out. Foreigners may run out of natural resources or money for making the goods'n'services they sell but we won't.

 

[EdwardBaiamonte]

The reason is that Americans can construct buildings and set up businesses all day long and we never run out.

anybody can to that so they don't need America for that. What you need to get wealth is big advantages like Chinese have in labor and Germans have in engineering and manufacturing.

 

[expat_panama]

...far better to be good at making cars jets tanks trains computers heavy equipment electronics tooling trucks etc...

I like having a free country and I'm not too hot on the idea that the State has to be in charge of what I do for a living and what I'm allowed to spend my money on.

I agree so why are you pointing it out??

You said you knew best as to what Americans should do for a living --but hey, if you're willing to leave it at that and not have a tax system that gives the state control how we earn a living that's great!

 

[EdwardBaiamonte]

You said you knew best as to what Americans should do for a living

yes they should be world class engineers more than real estate brokers selling off America

 

[expat_panama]

...Americans can construct buildings and set up businesses all day long and we never run out.

...anybody can to that so they don't need America for that...

Say that all you want and meanwhile folks from all over the world continue to pour in with big bucks for American made buildings and businesses --not foreign ones.

...What you need to get wealth is...

Hey fella, I already know how to get all the wealth I want (constructing buildings and setting up businesses) and I've done quite well thank you. I'm just trying to keep you from getting in my way w/ goofy import tax hikes.

 

[EdwardBaiamonte]

, if you're willing to leave it at that and not have a tax system that gives the state control how we earn a living that's great!

The state does have control by imposing the highest taxes and most extensive regulations in the world. Hopefully, if they stopped doing that it would eliminate our trade deficit. If not then as a matter of national security some tax incentives toward engineering might be in order..

 

[EdwardBaiamonte]

I'm just trying to keep you from getting in my way w/ goofy import tax hikes.

if I said I wanted import taxes I'll pay you $10,000. Bet??

 

[expat_panama]

I'm just trying to keep you from getting in my way w/ goofy import tax hikes.

if I said I wanted import taxes I'll pay you $10,000. Bet??

Huh, you don't want import tax hikes? Really? Whoa-- that's GREAT!

Ah, you know when you sort of talk about stuff how you don't like how people go and spend their money and it's supposed to kill America or something, you say you're not trying to have the Feds maybe like, do something?

 

[Correll]

...the issue is what we sell. We sell the Waldorf and they manufacture and sell everything. This is very bad. It leaves our country without jobs and expertise and thus in perpetual decline.

That's how the story goes, and when we learn the facts we find out that we've been fed a fairy story. A hard look at actual historical bank balances and payrolls shows how the Trade Balance really does affect our total private net worth:

• 1992 to 1999 - Trade deficit grows strong and our total private wealth almost doubles from $24T to $45T.
• 1999 to 2003 - The trade deficit pulls back a bit and wealth creation stops dead in its tracks.
  
• 2003 to 2007 - Trade deficit resumes growing and our riches continue to soar up to $70T.
• 2007 to 2009 - The protectionists see a collapsing trade deficit that costs Americans $18T.
• 2009 to now - Trade deficit growth starts up again and stumbles, wealth creation resumes at a slower rate.

The reason is that Americans can construct buildings and set up businesses all day long and we never run out. Foreigners may run out of natural resources or money for making the goods'n'services they sell but we won't.

Funny, you only look at the recent past, during which our bi-partisan consensus on free trade never wavered.

 

[EdwardBaiamonte]

...the issue is what we sell. We sell the Waldorf and they manufacture and sell everything. This is very bad. It leaves our country without jobs and expertise and thus in perpetual decline.

That's how the story goes, and when we learn the facts we find out that we've been fed a fairy story. A hard look at actual historical bank balances and payrolls shows how the Trade Balance really does affect our total private net worth:

• 1992 to 1999 - Trade deficit grows strong and our total private wealth almost doubles from $24T to $45T.
• 1999 to 2003 - The trade deficit pulls back a bit and wealth creation stops dead in its tracks.
  
• 2003 to 2007 - Trade deficit resumes growing and our riches continue to soar up to $70T.
• 2007 to 2009 - The protectionists see a collapsing trade deficit that costs Americans $18T.
• 2009 to now - Trade deficit growth starts up again and stumbles, wealth creation resumes at a slower rate.

The reason is that Americans can construct buildings and set up businesses all day long and we never run out. Foreigners may run out of natural resources or money for making the goods'n'services they sell but we won't.

Funny, you only look at the recent past, during which our bi-partisan consensus on free trade never wavered.

yes selling China the Waldorf and other assets is like taking a second mortgage on your house. The cash is nice at first but then the bill comes due and you are homeless.

 

[expat_panama]

..selling China the Waldorf and other assets is like taking a second mortgage on your house...

My house? That's make believe fantasy talk; in real life my house doesn't not have a second or even a first mortgage and yet I've built lots of buildings for sale to foreigners. So this is where we'll have to part company because the thread keeps wandering into fantasy and I like reality --it's where I work. When I want to play fantasy I prefer Witcher3.

 

[EdwardBaiamonte]

..selling China the Waldorf and other assets is like taking a second mortgage on your house...

My house? That's make believe fantasy talk; in real life my house doesn't not have a second or even a first mortgage and yet I've built lots of buildings for sale to foreigners. So this is where we'll have to part company because the thread keeps wandering into fantasy and I like reality --it's where I work. When I want to play fantasy I prefer Witcher3.

We are not talking about your personal situation. We are using and analogy to explain international trade to you. The Chinese had the money to buy the Waldorf because we buy their stuff and they don't buy our stuff A country that doesn't make stuff that others want to buy is declining.