Comments on: Trade Deficit Steals Private Sector’s Wallet

By: Pete Murphy

Pete Murphy — Sat, 14 Mar 2009 14:15:13 +0000

Daniel, you are wrong. The trade deficit is financed by a sell-off of American assets. As depletion of that finite supply of assets draws near, the inescapable result is a collapse of the global economy – which is just exactly what has happened.

Pete Murphy
Author, “Five Short Blasts”

By: kapotjeplov

kapotjeplov — Fri, 13 Mar 2009 12:32:18 +0000

“No one can read the chronicles of those earlier crises without sensing – with a chill – that history is reappearing itself. The story of the modern capitalist economy is a rhythmic repetition of cycles, syncopated by eerily similar crises. These crises, while their details differ, are but variations on the same theme.”

There is an expression for this: Kondratiev wave

By: Daniel Newhouse

Daniel Newhouse — Fri, 13 Mar 2009 07:39:27 +0000

This article is based on a profound misconception of the trade deficit. Currency is a commodity and a trade deficit means that your currency is being exported. As long as your currency value remains stable, the trade deficit is not a problem. It is rather sad that as screwed up as the U.S. is, our currency is still popular.
What is a problem is countries (China) that fix their currency value relative to the dollar, which prevents the natural equilibrium of the system.

By: black 3006

black 3006 — Fri, 13 Mar 2009 02:50:30 +0000

Weird. The authors at The Daily Reckoning preach “freedom”. So what do they do with their free speech forum? Shut it down! Laughing

This is likely a blind spot in Libertarianism. People have liberty as long as they behave a certain way and do what their told.