Yet another article in the New York Times about how fucked the US is when it comes to international trade. Chaina and Japan will own us. Just you wait...Excerpts below.
"To cover the debt, the United States has become more dependent on foreign governments. According to one study, private foreign investors have grown wary of financing the United States deficit over the last year; as a result, Asian governments have stepped in, especially Japan and China, and now provide 87 percent of the inflow of dollars to cover the gap in what Americans earn from selling and investing abroad."
Also, funny quotes:
"The Bush administration interpreted the current account deficit as a sign that other countries were lagging behind the United States and needed to pump up their economies...
"The imbalance "is largely a result of the global growth deficit," Mr. Nichols said. "It's important that the rest of the world grow more, which will expand our ability to export and aid our manufacturing industry."
Posted by bluprnt at September 14, 2004 04:20 PM Cold clinical economics is failing us. the idea of unlimited growth is finally becoming obsolete.
I think we don't realize what this collapse will mean though. we could wake up one morning and find that all the truckers on the continent see no reason to go to work anymore. and the grocery store is empty.
the end of all the shuffling of numbers that is modern economics, will also spell the end of the shuffling of a lot of goods. and that 2000 miles that is the standard for shipping your wheaties and coffee will all of sudden seem like light years.
Maybe than we will know what huger feels like.