A lot of it is going to interest on the existing debt.
American Economics Thread
- Thread starter Bernard
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So ummmm....that will cause food prices in the US to fall, and makes everyday Americans' lives a bit easier, right? Right??!!!!
china has qualified 3 hog producers in Russia. Since the train purchase from aboard is to feed the Chinese pig industry, how will it impact the grain import in the future. If I recall, 1 lbs of pig requires 7 lbs of grain.
I saw that Chinese pig import is very small comparing to Chinese production. Maybe it is not relevant.
I saw that Chinese pig import is very small comparing to Chinese production. Maybe it is not relevant.
It’s because the plebs are spending too much on crap they don’t need like housing, utility, and groceries.
One day this debt bubble is gonna burst and the effects will make 1929 look like just another bad day.
"money dysmorphia", first time hearing that one.
A decrease in payrolls is ambiguous evidence of productivity - for example, US oil & gas productivity has gone through the roof with the U.S. producing substantially more oil and gas than it ever has, all due to incredibly innovative oilfield technology such as fracking, from U.S. manufacturers such as National Oilwell Varco and Slumberger and payrolls are down.
This is clearly productivity - the amount of output per unit labor has increased dramatically and those people that left the oil and gas sector now produce other things.
This is clearly productivity - the amount of output per unit labor has increased dramatically and those people that left the oil and gas sector now produce other things.
A large increase in imports is simply due to a low savings rate - this is the sectoral balances identity: the fiscal balance + household savings minus business investment is equal to imports minus exports. The U.S. has a low savings rate because it is so wealthy and has been so stable and wealthy for a century, so white collar U.S. professionals don’t need any precautionary savings. They save for retirement in 401(k)s to fund the next generation of U.S. technological hegemony and economic growth (see for example, Nvidia having a 770% Y/Y increase in profit, funded by stock sales to pay for R&D, ) but have some liquidity in transaction accounts necessary for day-to-day expenses but can otherwise splurge on meals out, vacations, sports games, electronics, and anything else their heart desires. Their employment is near infinitely stable () and any risk they may be unable to work due to health issues are covered by the efficient well-developed US financial sector (through life and disability insurance), which is uniquely capable of risk pooling and risk transfer for US households, made possible by well-crafted legislation such as ERISA and the SEC Act. It is this rational complete lack of precautionary savings that is causal to the U.S. current account/trade deficit and nothing else.