Why send jobs overseas is good for the economy. Trade deficit is good too.

[FloridaPat]

Rather long and interesting article about the history of the dollar. Says we're an empire in decline. But seems as long as we keep exporting all those worthless dollars, our economy stays afloat. So by sending jobs and manufacturing overseas, that gives us more things to buy and more dollars to go overseas and sit in a bank. This has been going on since 1971. Rich companies have manufacturing plants. We have been had.

http://mathaba.net/0_index.shtml?x=530827

"The more dollars are circulated outside the US, the more the rest of the world has had to provide the US with goods and services in exchange for these dollars. The US even has the luxury of having its debts denominated in its own currency.

How does this work?
· The United States runs a balance of payments deficit by spending more money in other countries (buying their products, investing in them, or giving them dollars) than they spend in the United States.
· The extra dollars are held by the countries’ central banks. The banks do not ask the United States to redeem them for gold or another currency. As long as foreign banks accept and hold dollars as if they were gold, the dollars act as reserves. "

[nadinbrzezinski]

1. Been readying a great book on this

and yes we are an empire in decline, what is worst, we are an empire in decline that never figured out how to make the empire pay.

[Eric J in MN]

2. When jobs are moved to India, some of the money spent

on those salaries will make it to the US, but a lot more of it would be part of the US economy if the jobs stayed here.

[sweetheart]

3. they "own" the united states

The united states is owned by foreign bankers who invest
every day a flood of money, and this Equals the trade deficit in goods.

This is why the reality is a trade balance. The issue really, is if
petrol markets become denominated in euros, whether the dollars reserve
currency status will be unchallenged. Then we would see that slow long
dollar slide all the economists talk about. Its a slow correction as
the world gets off dollar-oil addiction. Without this injection of
energy-flow-cash in to dollar exchange, the dollar can drop and by dropping
default on all those foreign investors holding all the debt... so bush
gets to say fuck you coming and going...

Part of the idea as well, is based on the theory of the federal reserve
system and monetary economics. A government can borrow against its future
tax takings, and use this funny money to create jobs in an economy, which
will theoretically increase the tax-take. This kind of government stimulus
is running a deficit, and is supposed to be used to make up when economic
cycles ebb and flow, that the government picks up the employment cycle.

Rather here it is used politically, the government increases military
spending by declaring aggressive wars, domestic surveillance and such,
this increases the job market, heck, the CIA's advertizing for spooks
in "the economist"... everyone's hiring, because of your taxpayers
generous dole to the fattest government *EVER*... and all the "good economy"
is just the stimulus being eaten up, as if you can drive on fuumes forever.
And anyone who's driven across the potholed roads, and seen the delapidated
public infrastruture can see, that the spending has been all on bombs, way
way too much on bombs... but what is to be done...