Trade surplus hurts -Andy Xie
Andy xie wrote a good article on why accumulating large trade surplus hurt both the surplus and the deficit countries.
“if you don’t know how to invest the surplus, it’s best not to accumulate them”
“if you know don’t how to handle big profits,you shouldn’t earn so much”
“if you don’t know how to invest your money,you shouldn’t save so much”
The endgame in order to rebalance the global economy will be in the form of inflation,default,asset restructuring or higher taxes, take your pick.
Entry filed under: Watch your step.