Quote:
Originally Posted by Ethersync
No, I want you to explain how balanced trade would have prevented this crisis.
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Because it would of kept more of the wealth we had in the West in the West and sent less to the developing world. The banks would of had more money, people would have more jobs creating wealth and over all more of the wealth we created would of stayed here.
By sucking in huge amounts of goods and services, cheap or otherwise you take money out of the system. And instead of a complete collapse we would of had a good old recession which hits every so often.
Recessions are not new, I have lived through at least 3 or 4. The system over inflates and then corrects itself by deflating. Because a lot of the wealth was still in the country we weathered it, yes people lost homes and jobs, but it was short term. This time the jobs are not there, they've been shipped out. Along with a lot of the wealth.
The only way we could fund the consumer society we had based on importing goods was with debt and to fund more consumer wealth we increased the debt. Then along comes a President who decides big business and Wall Street can do no wrong (sarcasm), a war that cost a fortune, a housing market about to collapse and you end up where you are today.
We would of had a recession, but it would of been something we could of managed.