6 ms·

and what does Milton Friedman say about a country having enough money to import without export?

by owebmaster 2y ago

deleted 2y ago
[deleted]
smogcutter 2y ago
[flagged]
cjbgkagh 2y ago
The US is able to exports its inflation, not all of it but a lot of it. A membership tax for the ‘rules base order’.
- owebmaster 2y ago
  OP mentioned a country, so not just the US, that is why I asked. Edit: Alright, by reading the link, what Friedman means, I think, is that a country still need to export more than import, but should export just the minimum enough to pay for the imports. In volume (so I'd guess manufactured products not commodities).
  - cjbgkagh 2y ago
    There is another side of the ledger e.g. currency so the question is then how does a currency remain valuable when more has to be produced to keep buying things, as opposed to selling things. US has been running a trade deficit for only the past 60 years, since the Nixon shock which is probably very related. While on paper the US is per capita wealthier today I think that’s more to do with ponzi economics.
    - owebmaster 2y ago
      > While on paper the US is per capita wealthier today I think that’s more to do with ponzi economics. It is still the most developed economy but with a healthcare and education expense bigger than any other country while the citizens still need to pay a fortune for it.
fsckboy 2y ago
>a country having enough money to import without export? there's no such thing. when you import, you send your currency overseas to pay for the goods. There is nothing they can do with your currency except send it back to you by buying things from you, lending it to you, or making direct equity investments in your companies. (otherwise there is this huge growing pile of your currency accumulating overseas which drives down your purchasing power since it's in surplus) not sure if Friedman said that, but he did know more about econ that me, and what I've said is accurate.
- daseiner1 2y ago
  USD remains the world’s reserve currency, and the primary currency of global trade. i.e., the exporter, paid in dollars, can also use those dollars to buy goods from other nations beside the US.
  - graeme 2y ago
    What the OP said is true. Countries do trade USD with each other, but considered as a group the net effect is that countries can only: >send it back to you by buying things from you, lending it to you, or making direct equity investments in your companies. That's true whether one foreign country exists or 10,000.
- 8note 2y ago
  thats not accurate to how the US trade works coutries trade with the US to get USD, but then trade that USD with each other some countries stack up the USD like saudi arabia, but theyve got a pretty strong partnership with america on defense and foreign investment
  - _heimdall 2y ago
    I would have expected other countries to largely be holding securities. Am I wrong there, are they actually holding primarily USD?
    - 2y ago

and what does Milton Friedman say about a country having enough money to import without export?

deleted 2y ago

[deleted]

smogcutter 2y ago

[flagged]

cjbgkagh 2y ago

The US is able to exports its inflation, not all of it but a lot of it. A membership tax for the ‘rules base order’.

owebmaster 2y ago
OP mentioned a country, so not just the US, that is why I asked. Edit: Alright, by reading the link, what Friedman means, I think, is that a country still need to export more than import, but should export just the minimum enough to pay for the imports. In volume (so I'd guess manufactured products not commodities).
- cjbgkagh 2y ago
  There is another side of the ledger e.g. currency so the question is then how does a currency remain valuable when more has to be produced to keep buying things, as opposed to selling things. US has been running a trade deficit for only the past 60 years, since the Nixon shock which is probably very related. While on paper the US is per capita wealthier today I think that’s more to do with ponzi economics.
  - owebmaster 2y ago
    > While on paper the US is per capita wealthier today I think that’s more to do with ponzi economics. It is still the most developed economy but with a healthcare and education expense bigger than any other country while the citizens still need to pay a fortune for it.

fsckboy 2y ago

>a country having enough money to import without export? there's no such thing. when you import, you send your currency overseas to pay for the goods. There is nothing they can do with your currency except send it back to you by buying things from you, lending it to you, or making direct equity investments in your companies. (otherwise there is this huge growing pile of your currency accumulating overseas which drives down your purchasing power since it's in surplus) not sure if Friedman said that, but he did know more about econ that me, and what I've said is accurate.

daseiner1 2y ago
USD remains the world’s reserve currency, and the primary currency of global trade. i.e., the exporter, paid in dollars, can also use those dollars to buy goods from other nations beside the US.
- graeme 2y ago
  What the OP said is true. Countries do trade USD with each other, but considered as a group the net effect is that countries can only: >send it back to you by buying things from you, lending it to you, or making direct equity investments in your companies. That's true whether one foreign country exists or 10,000.
8note 2y ago
thats not accurate to how the US trade works coutries trade with the US to get USD, but then trade that USD with each other some countries stack up the USD like saudi arabia, but theyve got a pretty strong partnership with america on defense and foreign investment
- _heimdall 2y ago
  I would have expected other countries to largely be holding securities. Am I wrong there, are they actually holding primarily USD?
  - 2y ago