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http://www.sott.net/
Unfortunately "manage our economy to keep Canadians fully employed."
is not "a" primary aim of governent, let alone "the" primary one.
BELOW(30)(30)(30)(30)(30)(30)(30)(30)(30)(30)(30)30)(30)(30)(30)(30)(30)
From: Larry Kazdan http://www.sott.net/
Unfortunately "manage our economy to keep Canadians fully employed."
is not "a" primary aim of governent, let alone "the" primary one.
BELOW(30)(30)(30)(30)(30)(30)(30)(30)(30)(30)(30)30)(30)(30)(30)(30)(30)
To: Letters Editor Cc: jchidley@postmedia.com
Subject: Let's get this straight: Trade deficits aren't bad, Joe Chidley, November 15, 2017
- http://business.financialpost.com/investing/investing-pro/lets-get-this-straight-trade-deficits-arent-bad
- Regarding our trade deficit, since Chinese factories must pay their workers and suppliers in Chinese currency, our Canadian dollar purchases must be exchanged for Chinese yuan, which only the Chinese can supply. So in a trade deficit with China, they send us real goods and services in exchange for numbers we provide in a Canadian bank account for their future use to buy Canadian goods should they ever wish.
- While it it true that Chinese workers get the salaries in yuan to make the goods that they agree to ship to us, nothing prevents us from creating new Canadian dollars that we can use here to put Canadians back to work, just as the Chinese government makes new yuan to allow the Chinese workers to get paid domestically. In other words, our loss of aggregate demand because foreigners hoard Canadian dollars can be compensated through deficit spending by our own federal government.
- The trade deficit is not a problem as long as we are smart enough to manage our economy to keep Canadians fully employed.
- Footnotes:
- Jim Stanford: Is Slow �Growth� Inevitable?
- http://www.progressive-economics.ca/2016/07/21/is-slow-growth-inevitable/
- "New talk of �helicopter money� strategies (whereby a central bank would create new credit and directly inject it into the real
- economy, to support investment, government programs, or consumption) confirms that if we collectively decide we need it, and
- enforce our will on our political and monetary leaders, we could create all the money needed to finance real, productive work.
- So long as millions are languishing without a job, there does not appear to be a good argument against doing so. To the contrary,
- if it helps us put an end to pollution (including greenhouse gases) and poverty, an all-out war-like mobilization seems like a
- no-brainer. Living standards would grow, taxes would be paid, the environment would be protected, and real GDP would grow rapidly....."
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