"Larry Jaques" wrote in message
...
On Thu, 13 Nov 2003 03:33:18 GMT, "Ed Huntress"
brought forth from the murky depths:

"Larry Jaques" wrote in message

In your dreams, Ed. The US wants more products that we don't produce
than the world wants products we produce. It might happen by chance
some day, but not by any plan known to man today. Balanced trade is
a nice dream, though.

You ought to look up Warren Buffet's plan.

Will do!


After we've all been buffeted
around by China and India for another decade or so, it just may gain some
traction.

I saw you mention that earlier and it looks quite enticing.
Alas, it's still a dream and looky what Dubya is still doing
to the economy.

Yeah, I like the idea, and I'm sure that Buffet realizes it's just an
exercise to stimulate some thinking.

I see it as a potential stabilizer, like a hedge fund, for situations like
the one we face right now: an economy that's been in the dumps, with a
serious increase in the national debt, coupled with a level of trade
deficits that's unsustainable and unjustifiable except in an economy in
which the domestic economic growth is very high.

When we're on top of a business cycle, in other words, we don't need
anything like it. We can accept large trade deficits and perhaps even
benefit from them, because of the amount of domestic activity stimulated by
all of that trade, going both ways. But not now. And to institutionalize
$460 billion deficits on the tail end of a recession is to institutionalize
a policy that's destructive to the US, and to the world economy as a whole.

China, however, loves it. g

Ed Huntress