g kohler wrote:
Could it not be the case that exactly that is possible after all? � namely, if other countries run substantial c/a surpluses *indefinitely*, then the U.S. could afford to run a substantial c/a deficit indefinitely? Could it not be the case that territorial, so-called sovereign, states and their foreign trade balances have become unimportant in a globalized world economy? (Thurow: a global economy has replaced national economies. Leftist literature on the demise of the sovereign nation-state.) Who knows whether the state of California has a c/a surplus or deficit with the rest of the U.S.? Most people don�t know and don�t think that is important.
Leaving aside the fact that U.S. states all use the dollar, California couldn't indefinitely consume more than it produces and make up the difference by going ever-more-deeply into debt, could it? This borderless meme has gone way too far.
Doug
