tag:blogger.com,1999:blog-9612609.post3767624624400978048..comments2023-09-29T06:58:20.125-07:00Comments on Badtux the Snarky Penguin: Net importers wealthier than net exportersBadTuxhttp://www.blogger.com/profile/01345749557330760251noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-9612609.post-80227247890750916892011-04-21T09:27:06.664-07:002011-04-21T09:27:06.664-07:00Hello, Tux. Jazzbumpa sent me a link to this post....Hello, Tux. Jazzbumpa sent me a link to this post.<br /><br />Don't remember where I read it, but I found it striking that if hoarding ("under the mattress") leads to deflation, then even money under the mattress is effectively earning interest. (Gaining in value.)<br /><br />Setting aside the topic of trade deficits for now, I agree that good definitions are important, and the simpler, the better. I like to use the words "wealth" and "riches". The golden goose is wealth. Her eggs are riches.<br /><br />This means "wealth" is the same as "capital". I can live with that. An education would count as wealth; and the riches you spent getting it would be investment.<br /><br />Money would generally count as riches. The king was in the counting-house, counting out his money... But in a deflationary economy, idle money grows, and therefore is wealth.<br /><br />ArtSThe Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-9612609.post-24134612928675796842011-04-20T20:06:18.601-07:002011-04-20T20:06:18.601-07:00Good points. Thinking about it, it's clear tha...Good points. Thinking about it, it's clear that trading toilet paper for valuable goods cannot go on forever. Long-term, it will suppress local production because local production uses real assets from local markets. The end result would be de-industrialization. Hmm, where have I noticed that happening? :).<br /><br />And yes, you inspired this article. Most of my articles are inspired by other bloggers, just as most of my songs are inspired by other songs. <br /><br />- Badtux the Easily-inspired PenguinBadTuxhttps://www.blogger.com/profile/01345749557330760251noreply@blogger.comtag:blogger.com,1999:blog-9612609.post-28728753943705867552011-04-20T19:37:02.523-07:002011-04-20T19:37:02.523-07:00Tux -
Did I inspire this post? It's pretty c...Tux -<br /><br />Did I inspire this post? It's pretty convincing, but there are some holes, I think. One occurred to me as I was reading, and you touch on it here:<br /><br /><i>It also presumes that the resulting imported wealth is not offset by a reduction in locally-produced wealth due to rising unemployment taking productive assets (workers) out of the market.</i><br /><br />Bingo! Pretty clearly, this presumption is DOA, so that loss of jobs and loss of wealth needs to be corrected. I don't see a plan, or even serious consideration of this issue anywhere on the political spectrum.<br /><br />Another thing that seems not quite right is your black and white assertion that money is not wealth. Especially since you consider stocks and bonds in the category of "stuff." Financial stuff and money are almost perfectly fungible, so the distinction seems artificial and forced. <br /><br />Also, for money to not be wealth, don't you have to negate the money function as a store of value?<br /><br />Plus, Phoenician has a point. Don't Asian nationals own some big chunks of California? My former employer - a once proud American company - is partly owned and completely operated by a foreign company. I think the water utility in Indianapolis is owned by a French company. The point is easy to overstate, perhaps, but foreign investment here is significant.<br /><br />Anyway, we do export to China. if I can believe what I've read, they fucking LOVE Buicks over there, and that is what is keeping that vehicle line alive.<br /><br />Cheers!<br />JzBJazzbumpahttps://www.blogger.com/profile/07337490817307473659noreply@blogger.comtag:blogger.com,1999:blog-9612609.post-47673345142124067332011-04-18T22:45:02.557-07:002011-04-18T22:45:02.557-07:00Phoenician, I don't have data to either suppor...Phoenician, I don't have data to either support or refute your assertion about what the Chinese are doing with all the dollars we're sending them. What is your source of data for that assertion? <br /><br />- Badtux the Dragnet Penguin<br />("Just the facts, ma'am.")BadTuxhttps://www.blogger.com/profile/01345749557330760251noreply@blogger.comtag:blogger.com,1999:blog-9612609.post-69770576706467229962011-04-18T21:41:09.837-07:002011-04-18T21:41:09.837-07:00Pardon me, but I believe that the ideais that even...Pardon me, but I believe that the ideais that eventually the dollars <b>do</b> come back, in the form of capital investment.<br /><br />The Chinese don't buy American goods. They buy American assets, American companies, and American bonds (establishing a long-term stream of interest out).Phoenicianhttps://www.blogger.com/profile/04211507669622120640noreply@blogger.com