trade deficits

In an October 12th Post entitled “Foreigners and the Burden of Debt,” Paul Krugman made the following comment.

”. . . we’d all agree that deficits make us poorer if they crowd out investment spending — which they would if the economy were near full employment, but won’t if we’re deeply depressed. All we have to do is realize that net foreign investment — purchases minus sales of assets from and to foreigners — is also a form of investment. Or to put it a bit more simply, sure, budget deficits can make us poorer as a nation if they lead to bigger trade deficits.”

Read below the fold...

(Author's Note: This post updates Part Three of a series reviewing Warren Mosler's book: The 7 Deadly Innocent Frauds of Economic Policy. The updating is prompted by a post by Hannah at DailyKos offering a “. . . a Review Sort of” of Warren's book. Read below the fold...

Warren Mosler is running for the Senate in Connecticut in the Independent Party primary. Unlike both the Democratic and Republican candidates Warren really understands economics and he's really brilliant at explaining it to regular folks. Here's a youtube on why we never have to worry about having enough money to repay the Chinese, or ant other nations that are holding US Dollars. Read below the fold...

In the previous two posts in this series I've examined four ideas that Warren Mosler has called “deadly innocent frauds,” (difs) and that others have variously referred to as myths, scares, and lies. Read below the fold...