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Trade deficits are ALWAYS detrimental to their nations’ GDPs.




GenSeneca, your statistics may be facts.

The conclusions you’ve arrived at due to those statistics are opinions; I believe in this case you’ve reversed cause and effect.  For further discussion with regard to this facet of trade deficits and the value of the U.S. dollar, refer to messages #42 and #43.

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Excerpted from message #42:

You argue that annual statistics demonstrate a positive rather than an inverse relationship between trade deficits and their nation’s GDPs. Logically then wouldn't a trade surplus be detrimental to the GDP?


Trade deficits are not the only factor that affects GDP. Nation’s import volumes are affected by their volumes of all (imported and domestic) products sold within their domestic markets. Similarly nations’ export volumes are affected by the volumes of all products sold within their foreign markets. Currency exchange rates are both affected by and affect nations’ trade deficits.



Respectfully, Supposn


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