mikedilger on Nostr: I'm humble enough to say that maybe it is I that is confused, but IMHO it is you who ...
I'm humble enough to say that maybe it is I that is confused, but IMHO it is you who are confused.
Defecit and surplus can be used to describe the change in a debt, or the change in a fictional account. The current account between the US and China is fictional. it is an ACCOUNT. Think of that word. Account... when you account for how your car got smashed what are you doing? You are explaining it. An account is an explanation of why something was transferred from one place to another. It is just and only that -- an explanation. Accounting is all about explaining why money or goods moved... was the money that I received income, payback of a loan, a gift, a loan? The accounting may imply obligations, like I have to pay the money back to the lender.
But in global trade, nobody has to pay anybody back. They aren't loans, they are trades.
If my grandmother buys a vase off of Ali Express, after that happens, nobody has any new obligations on any books anywhere. It is just a trade. They get the USD, grandma gets her porcelain vase.
So again IMHO there is no defecit that I must pay attention to. I can look through all of that goobley gook directly at the actual assets and obligations, the only real things.
Defecit and surplus can be used to describe the change in a debt, or the change in a fictional account. The current account between the US and China is fictional. it is an ACCOUNT. Think of that word. Account... when you account for how your car got smashed what are you doing? You are explaining it. An account is an explanation of why something was transferred from one place to another. It is just and only that -- an explanation. Accounting is all about explaining why money or goods moved... was the money that I received income, payback of a loan, a gift, a loan? The accounting may imply obligations, like I have to pay the money back to the lender.
But in global trade, nobody has to pay anybody back. They aren't loans, they are trades.
If my grandmother buys a vase off of Ali Express, after that happens, nobody has any new obligations on any books anywhere. It is just a trade. They get the USD, grandma gets her porcelain vase.
So again IMHO there is no defecit that I must pay attention to. I can look through all of that goobley gook directly at the actual assets and obligations, the only real things.