Trade gaps haunt the global economy
 

How do you feel about this ?

A new report says risks of global crash have increased. Why? Look no further than the United States' $68 billion July trade deficit. Plus: Apple's headed to $100.

You can read more about this:
http://articles.moneycentral.msn.com....aspx?GT1=8689

Last week, the International Monetary Fund released its semiannual Global Financial Stability Review, ahead of meetings this weekend in Singapore. The report was full of warnings that the risk of a global financial crash is increasing. This comes hot on the heels of a message from HSBC, one of the world's largest investment banks, that it has put the United States on recession alert.

So what is behind all of the doom and gloom? Chalk it up to the rising global imbalances in trade and foreign reserves that are boosting the possibility that a cyclical global slowdown could melt down into something worse. Not surprisingly, the U.S. economy is the key variable here.

Ok there has to be some kind of feed back on this no ?

Get a job at Wal-Mart, all I have to say.

I feel nothing about that. Better be ignorant sometmes.

Good answer...please make sure you vote too

people have been saying the same since we started running a deficit... things are not great, but far from bad in my opinion...

Watch every consumer's disposable income eliminted and we'll see who's working at Walmart.

Yes at the moment...but what is coming down the road ? History has a way of repeating it's self ??

So very true

Emerging economies (e.g. China) have been financing America's deficit so far by accumulating vast dollar reserves. This will, however, not go on forever. If America doesn't reduce its deficit before it stops (and it will stop, eventually, because continuing to finance the deficit would eventually cause them hundreds of billions of dollars in losses and because their capital markets are becoming ever more capable of handling assets themselves), the American economy and indeed America as a whole will get fucked hard.