February 04, 2004

Quote of the Day: Trade deficit originates in US extravagance

What does the communist Chinese People's Daily have to say about the U.S. trade deficit? Trade deficit originates in US extravagance: "Trade deficit is the result of the counting of balance of payments. According to the accounting principle of the balance between income and expenditure, a country must have the means of payment if what it buys in the world market surpasses what it sells. Historically, various countries usually make up this difference with gold or silver. But in today's world, the United States possesses a kind of privilege, which enables it to pay around US$400 billion worth of trade gap annually with US dollars it issued. But this kind of privilege is only a necessary condition allowing the incessant expansion of US trade deficit, its ample conditions lie in the aspect of demand, i.e., the unlimited pursuit of extravagance. "


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