4 ms·
We don't really know why the US savings rate is low, but we do know more explicitly why the savings rates of those "shops", aka surplus countries is abnormally
by corimaith 1y ago
We don't really know why the US savings rate is low, but we do know more explicitly why the savings rates of those "shops", aka surplus countries is abnormally high, with weak social spending, financial repression, currency manipulation etc. Their manufacturing capacities exceed their domestic consumption to absorb, that is to say, they need export markets to stave off unemployment.
Is there not an argument that by the virtue of free capital controls and stronger commitments to free trade, the US is taking the inverse of the exportation of domestic imbalances created by these surplus countries?
- deleted 1y ago[deleted]
- ta1243 1y agoUS assets far exceed US debts https://www.federalreserve.gov/releases/z1/20250313/html/recent_developments.htm https://www.federalreserve.gov/releases/z1/20250313/html/rec... If US private assets were used to "pay off" US government debt (much of which is owed to US private asset holders), then Americans would be about as rich as they were in 2020 (with about $140T instead of today's $170T)
- mr_toad 1y agoA distorted housing market that sucks up excess money, keeping interest rates low. Uncap the housing market, free up cash, which will force the Fed to tighten the money supply, freeing investment from the housing market into industry.