Jim Devine wrote: >In what way was the 1997 Asian economic crisis a "great tonic" to the US >economy? Is it because the price of US imports fell? That, plus massive capital inflows (ca. $1 trillion since 1995). >How much real recovery is there in Asia? or is it just financial markets >and banks that are doing better there? Korean industrial production has been rising for several months, and officialdom (including U.S. pundits in the category) is worried that things are mending too quickly for the kinds of "radical reforms" that are "needed." Still, recoveries from deflations tend to be weak and subject to many false starts. >How long can the US keep having such large balance of trade (and current >account) deficits? Is there some sort of natural limit to US foreign >borrowing? Nothing natural about it. Doug
