Wednesday, October 31, 2012

Murray Rothbard on the Balance of Trade "Problem"


  1. Beautiful! Need more be said.

  2. I do not understand this. I thought the US dollar being the reserve currency is one of the reasons it's so much cheaper to manufacture things in other countries.

    Also immigrants come here to get our valuable dollars which go a long way in their home country. Does the USD not cause these situations?

  3. Rothbard's comments are dated. Is this where Dick Cheney got his "deficits don't matter" fodder? I think his observations at the time were true in that the rest of the world needed/wanted dollars as reserves to back up their currencies and traded us real goods to do that. However, we'll eventually find the rest of the world is sick of the US enjoying its "exhorbitant privilege" as the reserve currency. Look at the OPEC countries who would rather keep their oil in the ground than get more dollars! , and China is practically choking on its $3 trillion in reserves. Central banks have begun diversifying their reserves out of dollars; they've got too many dollars, and more dollars on the way with annoucement of QE to infinity.

    1. Rothbard specifically said in the video that a trade deficit is not the same as a government budget deficit.

  4. This is the one area where I disagree with Peter Schiff. Schiff's an ardent supporter of Rothbard and Schiff's 99% dead-on accurate on the issues, in my opinion. Can anyone explain Schiff's bizarre obsession with the trade deficit as a "problem"?

  5. @ Anonymous: The world is accumulating dollars but they can't buy anything with it because the United States is not manufacturing anything they want.

    The rest of the world is saving, investing, building factories and working hard to produce things. The United States just runs money off a printing press. This simply cannot go on forever.

    I don't know when this video was recorded but I guess the deficits at the time of Rothbards' speech were tiny compared to the monthly deficits of 40-50 billion dollars that the US have now on a monthly basis.