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Trade deficits are ALWAYS detrimental to their nations’ GDPs.

GenSeneca, A nation’s entire production is reported within its GDP.

To the extent that the entire production and production support of exported goods are not fully reflected within the prices of any globally traded goods, they are not identified and attributed to global trading. Additionally any portion of non-globally traded products that are supported or induced by production of globally traded products cannot be identified or attributed to global trading.

Thus trade surpluses’ contributions to their nations’ GDPs are understated.

We cannot identify foreign production not fully reflected within the prices of our imports. Additionally we cannot identify any foreign production supported by or induced by the production of our imports but not attributed to our imports. Due to these afore mentioned reasons, similarly to trade surpluses, trade deficits are understated.

Trade deficits are deducted from net domestic spending because they’re the nation’s net purchase of foreign goods within the aggregate foreign markets. Trade deficit’s detriment to the GDP can only be reported to the extent of the deficit itself. It cannot report the additional detriment due to the deficit’s understatement.

All of this was more fully explained with some examples within this discussion’s message #16.

Respectfully, Supposn

<blockquote data-quote="Supposn" data-source="post: 159380" data-attributes="member: 2314">Trade deficits are ALWAYS detrimental to their nations’ GDPs.GenSeneca, A nation’s entire production is reported within its GDP.To the extent that the entire production and production support of exported goods are not fully reflected within the prices of any globally traded goods, they are not identified and attributed to global trading.&nbsp; Additionally any portion of non-globally traded products that are supported or induced by production of globally traded products cannot be identified or attributed to global trading.Thus trade surpluses’ contributions to their nations’ GDPs are understated.We cannot identify foreign production not fully reflected within the prices of our imports.&nbsp; Additionally we cannot identify any foreign production supported by or induced by the production of our imports but not attributed to our imports.&nbsp; Due to these afore mentioned reasons, similarly to trade surpluses, trade deficits are understated.Trade deficits are deducted from net domestic spending because they’re the nation’s net purchase of foreign goods within the aggregate foreign markets.&nbsp; Trade deficit’s detriment to the GDP can only be reported to the extent of the deficit itself.&nbsp; It cannot report the additional detriment due to the deficit’s understatement.All of this was more fully explained with some examples within this discussion’s message #16.Respectfully, Supposn</blockquote>

[QUOTE="Supposn, post: 159380, member: 2314"] [b]Trade deficits are ALWAYS detrimental to their nations’ GDPs.[/b] GenSeneca, A nation’s entire production is reported within its GDP. To the extent that the entire production and production support of exported goods are not fully reflected within the prices of any globally traded goods, they are not identified and attributed to global trading. Additionally any portion of non-globally traded products that are supported or induced by production of globally traded products cannot be identified or attributed to global trading. Thus trade surpluses’ contributions to their nations’ GDPs are understated. We cannot identify foreign production not fully reflected within the prices of our imports. Additionally we cannot identify any foreign production supported by or induced by the production of our imports but not attributed to our imports. Due to these afore mentioned reasons, similarly to trade surpluses, trade deficits are understated. Trade deficits are deducted from net domestic spending because they’re the nation’s net purchase of foreign goods within the aggregate foreign markets. Trade deficit’s detriment to the GDP can only be reported to the extent of the deficit itself. It cannot report the additional detriment due to the deficit’s understatement. All of this was more fully explained with some examples within this discussion’s message #16. Respectfully, Supposn [/QUOTE]

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