Doug Henwood wrote: > > > > I really have no idea how this is going to end. But I do know there's > no way the U.S. can run a c/a deficit of >5% of GDP indefinitely. > Something's got to give, but who knows what or how? >
I've posed the following question twice already on this list and no one responded either time. A deficit looked at _in abstraction_ from finance represents a flow of booty from Japan & China to the U.S. There has always been a flow of booty from the periphery to the center of empires. I can't quite see this becoming a problem for the ruling class (the rest of us are a different matter*) as long as u.s. military strength is preponderant. Carrol *Isn't inflation a good way to balance the books? > Doug
