Comments by "" (@jmitterii2) on "" video.

China isn't getting out of it. They've increased their holdings this year so far from fiscal year 2012 $1155.2 trillion to current as of August 2013 to $1268.1. Was a pull a relatively small $10 billion pull back from July 2013 from $1279.3 trillion, but month to month it changes frequently bigger up ticks than down ticks: rest of fiscal year 2013: June 1275.8 May 1297.3 April 1290.7 March 1270.3 February 1251.9 Jan 1214.2 Dec 1220.4 Nov 1183.1 Oct 1169.9 Sept 1153.6 They're not dumping it. However, the three ring circus of congress over debt limit , China's officials commented they'd like to see some new type of world currency to chose from. Because the Euro, British pound, Canadian dollar, Australian dollar, etc. choices are on the same system and having the same economic doldrums-- this is a global recession. And China specifically is seeing rapid inflation and credit crisis of mass defaults on private and public debts. I personally have come to understand much of the problem has to do with income disparity in share of productivity gains since 1972 where productivity gains 95% of which went to 10% income earners and 90% income earners got the remaining 5% income gains. Which is unstable in terms of aggregate demand-- fewer people able to buy which results in less investment and production which then feeds back on itself.
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william smith Trade deficits are bad and totally agree with you. Its part of the wealth disparity effect, and it occurs to both the creditor and debtor trade nations. The capital allocation has broken down when disparity of incomes and wealth become to severe. Allocation of investment chases its tail. When a sector appears profitable-- the investment floods in, and begins to take on qualities of consumption especially when margin investment floods in on speculation. Actual AD is lost among the majority-- investors are chasing their own money around. And no real productive use comes of it as it sits on balance sheets of a few firms to either sit for a rainy day or be paid back to the very investors who tend to then reinvest. It never gets to production growth because business don't see a point when AD is insufficient (too few buyers of their goods). On the government debt deficit, we are only lucky we can borrow at such lower costs right now as the World's reserve currency. Otherwise even more would be unemployed at the moment.
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Debt deficits are bad when the reserve loses control over fixing interest rates. Deficits on their own aren't always bad. Depending on what is being spent on-- long term investment spending like energy, transportation, ports, markets, other utilities, and R&D is good. Security is good only to the level is required to achieve secure commerce, any excess only stimulates until it is no longer receiving funds. Temp relief like unemployment and other short term aid is only as good for a short term. The concern is what the deficits should be for? Security/military which doesn't have that much of a residual benefit and pretty sad when it does like GPS-- because now your spending so much you are statistically bound to get some R&D item that's useful beyond security. Instead, we should spend purposely on commerce R&D like navigation, transportation, medical, etc. specific criteria. And implementation of technologies like better grids using superconductors and get thorium reactors online in just 5 years as we await ITER which will take at least another 20 years. Where deficits relate to peoples and non-federal banking is on what purpose the borrowing: It's either investment such as house or utility like a car which has returns on its use and/or future exchange or consumption spending like on a vacation or tickets and hotel stays for the super bowl which carries no continued financial value, but just life value on enriching ones life experiences.
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william smith The computer and airplane development were all sponsored by various government through history. The computer was has many forms, first digital computer storage was invented Electronic Delay Storage Automatic Calculator in Cambridge England-- University of Cambridge is publicly funded university. Even though Wright Bro. invented powered flight US and European governments were their initial customers. Also, other European nations took off on the idea with government sponsorship for better development. US fell way behind in aviation until it too began attracting government money toward airplane R&D. Air conditioning however, I find no information on development from government funds other than the banning of CFC use in refrigeration because alternative methods had been invented privately <-- not sure of any government funding at all for air conditioning. Your point is nice, people invent with or without government sponsorship. So what.
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