February 03, 2004

Quote of the Day, Part One

From my friend Paul Van Eeden, who has an excellent column up at http://www.kitco.com/weekly/paulvaneeden/jan302004.html. The good news is that large trade deficits can be eliminated. The bad news is that a large trade deficit is almost always followed by a recession, the magnitude of which is proportional to the trade deficit. Given the size of its trade deficit, it would be a pleasant surprise if the United States can eliminate its current trade deficit by a mere recession. The magnitude of the deficit suggests a depression is more likely.


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