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> "Expanding the money supply lets people buy more locally produced stuff, but not more imports." Right, so for most developed nations this would be disastrous
by hodwik 11y ago
> "Expanding the money supply lets people buy more locally produced stuff, but not more imports."
Right, so for most developed nations this would be disastrous.
- kaonashi 11y agoThe worst you can be imposed on you (outside an embargo situation) is balanced trade, paying for real imports with fx acquired through real exports.
- hodwik 11y agoWhich, for the US, would be a very serious downgrade from our current situation.
- kaonashi 11y agoDepends on your position in the current situation.
- hodwik 11y agoWell, then let's clarify: For almost all Americans -- who produce essentially nothing of value, yet consume a lot of very real, imported goods -- balanced trade would be a complete disaster.
- kaonashi 11y agoTrade deficits are definitely a net positive, but that lack of demand they cause actively harm a large swath of Americans. There's a reason NAFTA has been so unpopular.