NeoCon logic 101:"record-high $61 billion monthly trade deficit is strengt

[blondeatlast]

From the Heritage Foundation, a leading RW think tank. I think it's good to know what this shadow government is up to, folks.

For example, Senators Hillary Clinton (D–NY) and Byron Dorgan (D–ND) recently proposed a law that would cap the trade deficit at 5 percent of gross domestic product (GDP). While this may sound reasonable, it betrays an ignorance of the economic forces of nature. Senators might equivalently pro­pose bills to cap the number of calories per home-cooked meal, cap the number of Fs in high school math classes, or cap the force of gravity.

More high(low)lights:
The record-high $61 billion monthly trade deficit is a sign of strength, not weakness. It reflects a balance of heavy foreign investment in the high-tech, high-productivity American growth engine. As Treasury Secretary John Snow has pointed out, America is growing much faster than other advanced nations. Nations with trade surpluses like Japan and Germany are economi­cally stagnant and actually suffer much worse budget shortfalls than the U.S. suffers.

--snip--

Investment follows growth, not the reverse. Studies show that good institutions lead to economic growth, and hence to higher investment. The policy implications for Congress are profound: faster growth above all else. Yes, investors prefer bal­anced budgets, but they put their money into nations with reality-based entitlement spending, low taxes on capital, healthy entrepreneurship, transpar­ency, and strong property rights.


In other words, drive the economy into the ground and watch the money flow like water!

[OrlandoGator]

1. Holy dogshit. War is peace. Ignorance is strength.

Orwell was indeed 20 years early.

[Inland]

2. Umm...if all that is bought by foreign investors, is it still "American"?

I dont' understand why we care about the foreigners vote in the strength of American companies, if the result is that foreigners buy American companies from us.

If in the future, American companies are "high tech growth engines", who gets the profits? Not us. The foreigners do.

That's why the trade deficit is always a negative sign. It's either a sign of something bad right now or a cause of a loss of control over our own industries and profits in the future.

The only people heartened by the flow of investment into the US are those Americans dumping US stocks and bonds and real estate and taking the cash.

[Roland99]

3. "deficits don't matter"

[gratuitous]

4. And what happens when other countries quit financing our debt?

Or call in their loans? I guess the Heritage folks figure Stupidhead will be able to keep pumping air into this leaky balloon for another 18 months, and then they can blame the ensuing recession on . . . Clinton, of course!