Bad News for US Trade Deficit

[Tom]

I thought it was a good question!

[Clocker]

Originally Posted by Show Me the Wire

If one country is building wealth another country is losing wealth, bottom line.

Do you have a source for this economic wisdom, or did it come to you in a dream?

The US has been running a trade deficit for decades. Why is the country not broke by now? Why does the economic data continue to show long term growth?

[Show Me the Wire]

Originally Posted by Clocker

Do you have a source for this economic wisdom, or did it come to you in a dream?

The US has been running a trade deficit for decades. Why is the country not broke by now? Why does the economic data continue to show long term growth?

Yes, history. I am not talking about data, I am talking the realities of the world.

You admitted China needs trade surpluses to build wealth. If there is unlimited wealth as you imply why doesn't China embrace a deficit trade balance, if a deficit trade balance will lead to economic data to show long-term growth? If one increases wealth does it come at the expense of another's wealth? Bezo's getting wealthier didn't negatively impact other peoples wealth position?

[Show Me the Wire]

The equation for a financial balance sheet:

Assets minus liabilities equals owner equity.

Owner's equity is wealth, so wealth is dependent on having assets that exceed liabilities. Liabilities are defined as a company's legal financial debts or obligations that arise during the course of business operations. Liabilities are settled over time through the transfer of economic benefits including money, goods or services.

If you have to transfer more economic benefits, than you receive your wealth decreases. The operative term is "transfer". Transfer means it is given to someone else and you no longer have it.

It is really very simple surpluses mean wealth, while transfers, deficits, decrease wealth.

If unlimited wealth existed the basic balance sheet equation would be owner equity is equal to assets plus economic transfers. Everything is a plus with out a negation, which is pure fantasy.



The economic trade war is all about who increases and who decreases.

[Clocker]

Originally Posted by Show Me the Wire

I am not talking about data, I am talking the realities of the world.

I'm talking about my realities, don't confuse me with data.

[Show Me the Wire]

Originally Posted by Clocker

I'm talking about my realities, don't confuse me with data.

The financial balance sheet equation is my reality as is your admission that a trade surplus means acquiring wealth. Hey, but feel free to deflect, from my facts, by attacking me with an insult about my mental fantasies.

i don't believe the fantasy of assets plus transfers of assets through deficits equals increased wealth (owner's equity).

Maybe you can give me a simple formula, like I provided to you to prove your fantasy proving there is no negation of wealth by transferring assets?

[elysiantraveller]

The United Kingdom has been running trade deficits for centuries... seem to be doing fine.

[incoming]

Originally Posted by Show Me the Wire

The financial balance sheet equation is my reality as is your admission that a trade surplus means acquiring wealth. Hey, but feel free to deflect, from my facts, by attacking me with an insult about my mental fantasies.

i don't believe the fantasy of assets plus transfers of assets through deficits equals increased wealth (owner's equity).

Maybe you can give me a simple formula, like I provided to you to prove your fantasy proving there is no negation of wealth by transferring assets?

Sometimes common sense can be very hard to explain......but even I can follow that walk thru.....Thanks

[Show Me the Wire]

Originally Posted by elysiantraveller

The United Kingdom has been running trade deficits for centuries... seem to be doing fine.

Really. Wow I didn't know that nation which practiced imperialism for centuries actually ran trade deficits during its imperialistic trade with its colonies.

Why would China rebel against the British Empire if China as a colony was benefiting by trade surplus? I guess that ungrateful country didn't understand economic data.

[elysiantraveller]

Originally Posted by Show Me the Wire

Really. Wow I didn't know that nation which practiced imperialism for centuries actually ran trade deficits during its imperialistic trade with its colonies.

Why would China rebel against the British Empire if China as a colony was benefiting by trade surplus? I guess that ungrateful country didn't understand economic data.

Still running deficits... still doing fine.

Centuries.

[Clocker]

Originally Posted by Show Me the Wire

Bezo's getting wealthier didn't negatively impact other peoples wealth position?

Please show that it did.

[Clocker]

Originally Posted by incoming

.....but even I can follow that walk thru....

Thru the looking glass. I don't even know what he is saying any more, but it isn't about anything I said, or anything about trade.


The idea that wealth can be created is the foundation of our free-market economy and the source of our success.

[Show Me the Wire]

Originally Posted by Clocker

Please show that it did.

Amazon did't negatively impact brick and mortar stores? I seem to recall lots of financial articles about Amazon negatively impacting other retailers, due to market share?

You do understand market share?

A company's market share is its sales measured as a percentage of an industry's total revenues. You can determine a company's market share by dividing its total sales or revenues by the industry's total sales over a fiscal period. Use this measure to get a general idea of the size of a company relative to the industry.Jan 4, 2018. https://www.investopedia.com/ask/ans...rket-share.asp


Again it is simple. The fact is for one to gain market share, another has to lose market share. Losing market share results in losing revenue, which is an asset. Lower assets means less wealth, even if you are fortunate enough to keep your liabilities the at the same level.

Thus Bezo's acquiring more wealth through his businesses increasing their market share lessened the wealth of others.

I have answered your question, now please answer mine about a factually simple formula akin to owner's equity which proves there is no negation from the transfer of assets (wealth) and that wealth actually increases.

[Show Me the Wire]

Originally Posted by Clocker

Thru the looking glass. I don't even know what he is saying any more, but it isn't about anything I said, or anything about trade.


The idea that wealth can be created is the foundation of our free-market economy and the source of our success.

Trading of derivatives, enough said.

[Show Me the Wire]

Originally Posted by elysiantraveller

Still running deficits... still doing fine.

Centuries.

Besides your opinion, show us a credible source which proves your assertion that an imperial power taking resources from a colony for centuries is an economy that is running deficits.