tag:blogger.com,1999:blog-1752027331714385066.post5240594935913581977..comments2024-03-19T14:38:21.141-07:00Comments on Terra Forming Terra: Real Employment Continued Contractionarcleinhttp://www.blogger.com/profile/05942529252160087271noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-1752027331714385066.post-77932848743655431082013-02-05T18:59:09.928-08:002013-02-05T18:59:09.928-08:00What has to be understood is that savings, debt an...What has to be understood is that savings, debt and the national accounts involving trade do not exist in a vacuum, they are inter related. Baby boomers are terrified by the repeated threats against Social Security, thus they save frantically. (Note, there is no person now reaching the age of 65 who can retire at full SS benefits. The rules for persons now reaching that age state 66 for full benefits, soon to be 67.) In the search for cheaper goods, big box department stores scour the earth for cheap junk to fill their stores, thus we have a negative balance of trade amounting to some 50 billion dollars or more each month. Money has to be created to fund both of these, and (shock) government has been creating money at a rate equal to total savings plus trade deficits. To balance the budget means the return of manufacturing to the US, or the collapse of the US economy to the point where we cannot afford to buy Chinese made printed tshirts. This is simply fact, based on well understood identities of national accounting.MadSathttps://www.blogger.com/profile/05095916615039150745noreply@blogger.com