Annual Trade Deficits

[Supposn]

The OP was totally wasted on you.

Colin Norris, responding to ToddsterPatriot is a futile effort. I've again lost my patience and am unable to continue responding to him respectfully. I don't want to be less civil. Respectfully, Supposn

 

[Toddsterpatriot]

Colin Norris, responding to ToddsterPatriot is a futile effort. I've again lost my patience and am unable to continue responding to him respectfully. I don't want to be less civil. Respectfully, Supposn

Every time you respond, your ignorance is made obvious.

 

[Colin norris]

Feel free to do the math to help Supposn.

You don't understand what current account deficits mean. That's ok but you should.

 

[Toddsterpatriot]

You don't understand what current account deficits mean. That's ok but you should.

It's when foreigners invest in our country, instead of buying our goods, using the money they
earned from our imports.

Current Account Deficit: What It Is, Structural & Cyclical Causes

A current account deficit occurs when the total value of goods and services a country imports exceeds the total value of goods and services it exports.

www.investopedia.com

You could also call it a capital account surplus.

https://www.govinfo.gov/content/pkg/ERP-2006/pdf/ERP-2006-chapter6.pdf

You won't be helping Supposn with his math?

 

[Colin norris]

It's when foreigners invest in our country, instead of buying our goods, using the money they
earned from our imports.

Current Account Deficit: What It Is, Structural & Cyclical Causes

A current account deficit occurs when the total value of goods and services a country imports exceeds the total value of goods and services it exports.

www.investopedia.com

You could also call it a capital account surplus.

https://www.govinfo.gov/content/pkg/ERP-2006/pdf/ERP-2006-chapter6.pdf

You won't be helping Supposn with his math?

The problem is people want cheaper items from China. Import more than they export, there's the deficit.
Trump tried to square It with tariffs but that didn't work before he sent the economy into a spin.
Stop buying Chinese goods and bingo son.

 

[Toddsterpatriot]

The problem is people want cheaper items from China. Import more than they export, there's the deficit.
Trump tried to square It with tariffs but that didn't work before he sent the economy into a spin.
Stop buying Chinese goods and bingo son.

Yeah, that's awful.

So you won't be helping Supposn with his math?

 

[Colin norris]

Yeah, that's awful.

So you won't be helping Supposn with his math?

Couldn't give a rat's if he disappeared up his own butt.

 

[Ringo]

"The crisis in the supply chain is not improving. The situation is getting worse — and it threatens to bring down the world economy along with it"
Oh, really? And where is this, what's it's name, the invisible hand of the market? How will mammon slaves explain the deficits under capitalism?

 

[Supposn]

Credible economists', regardless if they're proponents or opponents of “free trade”, do not refute for whatever a nation's annual net spending for goods and services is, a trade deficit nation's net balance of international trade reduced their nation's gross domestic product, (GDP) more than otherwise. Credible economists also generally recognize the positive relationship between a nation's GDP per capita, and their living standards.

That's why I'm among the proponents of the Import certificates concept. Refer to, https://en.wikipedia.org/wiki/Import_certificates#:~:text=Import%20certificates%20are%20a%20proposed,Trade%20Restoration%20Act%20of%202006.
Respectfully, Supposn

 

[Supposn]

It's when foreigners invest in our country, instead of buying our goods, using the money they
earned from our imports.

Current Account Deficit: What It Is, Structural & Cyclical Causes

A current account deficit occurs when the total value of goods and services a country imports exceeds the total value of goods and services it exports.

www.investopedia.com

You could also call it a capital account surplus.

https://www.govinfo.gov/content/pkg/ERP-2006/pdf/ERP-2006-chapter6.pdf

You won't be helping Supposn with his math?

Task0778, regarding USA's annual trade deficits promoting foreign investment into our economy:
Unless I'm effectively purchasing corporate stock directly from the issuing corporation, I am not investing in support of that company. I'm speculating upon the future value of that stock and relieving the seller of their future risk or profit due to owning the stock. ... The point is I'm not actually “investing” into the organization that issued those debt securities.

Respectfully, Supposn

 

[Toddsterpatriot]

Respectfully, Supposn

Unless I'm effectively purchasing corporate stock directly from the issuing corporation, I am not investing in support of that company. I'm speculating upon the future value of that stock and relieving the seller of their future risk or profit due to owning the stock. ... The point is I'm not actually “investing” into the organization that issued those debt securities.

When we're discussing trade deficits, the flip side is usually foreigners buying Treasury debt.
Of course if a foreigner buys US shares of stock, it's not like the money they used is hidden under the seller's mattress. The seller now has money that can be used to make those investments in capital equipment, debt or equity, that increase our GDP.

 

[Supposn]

Unless I'm effectively purchasing corporate stock directly from the issuing corporation, I am not investing in support of that company. I'm speculating upon the future value of that stock and relieving the seller of their future risk or profit due to owning the stock. ... The point is I'm not actually “investing” into the organization that issued those debt securities.

When we're discussing trade deficits, the flip side is usually foreigners buying Treasury debt.
Of course if a foreigner buys US shares of stock, it's not like the money they used is hidden under the seller's mattress. The seller now has money that can be used to make those investments in capital equipment, debt or equity, that increase our GDP.

ToddsterPatriot, no; you're incorrect. The “investing” you're describing is actually a transfer of wealth that does not increase production within the importing nation's GDP. If and when the seller of the globally traded products uses the money to produce more goods or service products, only then will there be an increase within the GDP of the nations where the additional productions occur. Respectfully, Supposn

 

[Toddsterpatriot]

The “investing” you're describing is actually a transfer of wealth that does not increase production within the importing nation's GDP.

If Germany invested their surplus in US Treasuries, the spending they funded added to US gdp.

 

[Supposn]

If Germany invested their surplus in US Treasuries, the spending they funded added to US gdp.

ToddsterPatriot, no; you're incorrect. You're describing a transfer of wealth that doesn't affect any nation's GDP. Respectfully, Supposn

 

[Toddsterpatriot]

ToddsterPatriot, no; you're incorrect. You're describing a transfer of wealth that doesn't affect any nation's GDP. Respectfully, Supposn

Government spending is part of GDP.
Whether you believe it or not.

 

[Supposn]

Government spending is part of GDP.
Whether you believe it or not.

Toddsterpatriot, ALL (i.e. governments' and non-governments', including consumers') participation within net sales transactions of goods and service products are factored into the calculations of nations' annual GDPs.

I understand that you believe other transfers of wealth transactions such as loans, bonds, shares of enterprise ownerships, should also be considered as factors within GDP calculations, but they're not so factored in.
Economists and statisticians of governments, and academic institutions do not do as you suggest they should. Respectfully, Supposn

 

[Toddsterpatriot]

Toddsterpatriot, ALL (i.e. governments' and non-governments', including consumers') participation within net sales transactions of goods and service products are factored into the calculations of nations' annual GDPs.

I understand that you believe other transfers of wealth transactions such as loans, bonds, shares of enterprise ownerships, should also be considered as factors within GDP calculations, but they're not so factored in.
Economists and statisticians of governments, and academic institutions do not do as you suggest they should. Respectfully, Supposn

Global ranking of GDP per capita

Global ranking of GDP per capita: Refer to List of countries by GDP (PPP) per capita - Wikipedia //////////// Many, (I would suppose most) economists believe a greater GDP per capita indicates a comparatively higher standard of living. I'm unaware of any economist contending a lesser GDP per...

www.usmessageboard.com

One of your GDP links clearly shows government spending is part of GDP.

If Germany spends a trade surplus on US Treasuries, using your formula, does that add to GDP?

 

[Supposn]

View attachment 562863

Global ranking of GDP per capita

Global ranking of GDP per capita: Refer to List of countries by GDP (PPP) per capita - Wikipedia //////////// Many, (I would suppose most) economists believe a greater GDP per capita indicates a comparatively higher standard of living. I'm unaware of any economist contending a lesser GDP per...

www.usmessageboard.com

One of your GDP links clearly shows government spending is part of GDP.

If Germany spends a trade surplus on US Treasuries, using your formula, does that add to GDP?

Toddsterpatriot, it's not MY formula. The expenditure method of calculating GDP is the most generally used among economists, statisticians, and academicians throughout the the entire world. Although transfers of wealth, (i.e. transfer payments) are not directly included within the GDP, when the money is spent to produce or purchase goods or service products, the values of those products are attributed to, (i.e. increase the) GDP of the nations' where those product productions actually occurred.

If A USA company purchased goods $100K of products from the German government or a German company, that would be have reduced USA's annual GDP by $100K. If the Germans used the U.S. dollars to purchase U.S. Treasury bonds, that would have no affect upon USA's GDP. If the U.S. government purchased used the loan to purchase $75K of USA goods, and $25K of Chinese goods, that would have increased USA's GDP by $75K, and increased China's GDP by $25K. Respectfully, Suppposn

Some references are:
Why are financial transactions not included in GDP? | EveryThingWhat.com

Why are financial transactions not included in GDP?
Financial transactions and income transfers are excluded because they do not involve production. They do not involve current production, and therefore these transfers are not included in GDP. GDP is a measure of production through markets. Non-market productive activities are omitted.
////////////////////////////////////////////////////////////////////////////////////////////////

Transfer Payment

What Is a Transfer Payment?​

A transfer payment is a one-way payment to a person or organization which has given or exchanged no goods or services for it. This contrasts with a simple "payment," which in economics refers to a transfer of money in exchange for a product or service.
///////////////////////////////////////////////////////////////

Are Social Security Payments Included in the U.S. GDP Calculation?
No, Social Security payments are not included in the U.S. definition of the gross domestic product (GDP). Social Security payments are transfer payments, which are not included.1 They are, however, counted as personal consumption expenditures (PCE) once they are used to purchase something. Because of this, counting Social Security payments issued from the government to the recipient would be counting the same money twice

 

[Toddsterpatriot]

Toddsterpatriot, it's not MY formula, the expenditure method of calculating GDP is the most generally used among economists, statisticians, and academicians throughout the the entire world. Although transfers of wealth, (i.e. transfer payments) are not directly included within the GDP, when the money is spent to produce or purchase goods or service products, the values of those products are attributed to, (i.e. increase the) GDP of the nations' where those product productions actually occurred. Respectfully, Suppposn

Some references are:
Why are financial transactions not included in GDP? | EveryThingWhat.com

Why are financial transactions not included in GDP?
Financial transactions and income transfers are excluded because they do not involve production. They do not involve current production, and therefore these transfers are not included in GDP. GDP is a measure of production through markets. Non-market productive activities are omitted.
////////////////////////////////////////////////////////////////////////////////////////////////

Transfer Payment​

What Is a Transfer Payment?​

A transfer payment is a one-way payment to a person or organization which has given or exchanged no goods or services for it. This contrasts with a simple "payment," which in economics refers to a transfer of money in exchange for a product or service.
///////////////////////////////////////////////////////////////

Are Social Security Payments Included in the U.S. GDP Calculation?​

No, Social Security payments are not included in the U.S. definition of the gross domestic product (GDP). Social Security payments are transfer payments, which are not included.1 They are, however, counted as personal consumption expenditures (PCE) once they are used to purchase something. Because of this, counting Social Security payments issued from the government to the recipient would be counting the same money twice

Toddsterpatriot, it's not MY formula, the expenditure method of calculating GDP is the most generally used among economists, statisticians, and academicians throughout the the entire world.

Yup. And government spending, financed in part by foreigners buying Treasuries, adds to GDP.

 

[Supposn]

Toddsterpatriot, it's not MY formula, the expenditure method of calculating GDP is the most generally used among economists, statisticians, and academicians throughout the the entire world.

Yup. And government spending, financed in part by foreigners buying Treasuries, adds to GDP.

Whining Toddsterpatriot, your brain must rattle around in your skull like a beebe in a box car. Again you have exceed my patience and tolerance of your ignorance. Supposn