Norman
Diamond Member
- Sep 24, 2010
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Ok here is a other economic question...
The argument is; US is just spending burrowed money and thus growing their GDP. So the growth isn't legitimate. Obviously I am talking about real GDP, nominal GDP doesn't tell a thing.
Obviously GDP is going to give you a completely wrong kind of numbers if there is some type of bubble / overvalued currency going on. But I don't really understand this burrowing argument very well, because if you burrow money overseas it doesn't count as GDP right?
Anyway discuss about GDP.
The argument is; US is just spending burrowed money and thus growing their GDP. So the growth isn't legitimate. Obviously I am talking about real GDP, nominal GDP doesn't tell a thing.
Obviously GDP is going to give you a completely wrong kind of numbers if there is some type of bubble / overvalued currency going on. But I don't really understand this burrowing argument very well, because if you burrow money overseas it doesn't count as GDP right?
Anyway discuss about GDP.