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On Tue, 6 Jun 2000, Rakesh Bhandari wrote:
> Paul C wrote:
>
> >The point is that from the standpoint of the US economy the value of its
> >inputs is determined by the amount of its labour that it has to give up
> >in order to produce the exports required to obtain an import.
>
> The US as reserve center does not have to give up anything for imports; it
> gets them through the accumulation of an inflationary surplus of dollars
> abroad.
Trade deficits and surpluses complicate the matter, but it's
absurd to suggest that the US runs (or would be able to run) a
deficit equal to the value of imports.
Allin.
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