The meeting next week with China will be a very difficult one in that we can no longer have massive trade deficits...— Donald J. Trump (@realDonaldTrump) March 30, 2017
And just to make this clear. A trade deficit is not a problem. Here is Murray Rothbard in one minute and thirty-one seconds on the meaninglessness of the trade deficit:...and job losses. American companies must be prepared to look at other alternatives.— Donald J. Trump (@realDonaldTrump) March 30, 2017
-RW
Sure - so there's no sound money and therefore a trade deficit doesn't impact gold reserves. But you are sending local fiat to buy products from other countries that make their economies go round. Remember, for every dollar of manufactured goods that are imported there are another 1.3 dollars of spin-off activity stimulated in those countries. Okay, those $0.75 Chinese cork screws are nice (except that they last about 1/10 the time of a $3.50 US made cork screw). How about promoting sound money and sound money trade principles?
ReplyDeleteWhat do you think foreign countries do with US dollars? They are either spent buying US goods, or spent buying US treasuries (which for better or worse supports a stronger dollar and allows you to buy foreign made goods cheaper).
DeleteSounds money, of course, should be promoted. "Sound money trade principles" doesn't make any sense. What "trade principles"? People are free to trade with whomever they please - that's the only "trade principle"