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| Subject: Mercantilist Ideology A kind of economic theory. Mercantilism is an economic theory that holds the prosperity of a nation is dependent upon its supply of capital, and that the global volume of international trade is “unchangeable.” Economic assets or capital, are represented by bullion (gold, silver, and trade value) held by the state, which is best increased through a positive balance of trade with other nations (exports minus imports) and assumes wealth and monetary assets are identical. Mercantilism suggests that the ruling government should advance these goals by playing a protectionist role in the economy; by encouraging exports and discouraging imports, notably through the use of tariffs and subsidies. [Wikipedia: 2009] US Trade Deficit By John Schroy, on April 9th, 2006 |  One comment  When the Sage of Omaha, Warren Buffet, fretted last year that the trade deficit signified that foreigners were taking over the United States, he echoed common misunderstandings about the excess of US imports over exports and the growing volume of dollar assets held by the rest of the world. The nice thing about the US trade deficit is that it represents the exchange of foreign goods and services for dollars, not foreign money. April 9th, 2006 | Print Article |  Email Article |  Topics: Currencies, Mercantilist Ideology, unemployment, US dollar, Warren Buffett | Category: US Trade Deficit | One comment |  Short urlJanuary 2006 By John Schroy, on March 23rd, 2006 | Comments are closed  The excess of imports over exports means that cash is flowing into the US capital market from abroad, which should continue to prop up long bond prices. The January trade deficit, annualized, represents a 13% increase over the trade deficit of 2005. Since the trade deficit increased 18.3% in 2004 and 15.1% in 2005, the current rate of increase seems to indicate slower growth in the trade imbalance. March 23rd, 2006 | Print Article | Email Article | Topics: Interest Rates, Mercantilist Ideology | Category: US Trade Deficit | Comments are closed | Short urlFeatured articles on inside pages
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