Rick
Well-Known Member
- Joined
- Jul 17, 2007
- Messages
- 1,844
In the process, deficits and surpluses in balances of payments are unavoidable.
First, nobody is debating THAT - OF COURSE everything won't match up EXACTLY.
Friedman's statement was made in 1999, when the trade deficit with china was one third what it is now. It was also made before the gigantic Bush II and obozo national debt run-up. Friedman in 1999 probably wouldn't have believed that in the following decade a nation debt of ten trillion dollars had been run up. Would he really believe that >>NOW<<, with the tremendously weakened dollar, and international fears that the US can't pay it's national debt, that chinese capital would continue to move into US government securities? If they stop, what will happen to rates of return generally?
And what would he think of california >>NOW<<? A basket case in almost every respect.