Thursday, October 17, 2013

US current account and trade deficits

With all the unprecedented large amount of money printing by the US government, you would think that everyone in the US is now "wealthy". Far from the truth, the average person on the street has seen little to no benefit from the money printing program.

Marc Faber argues that the money printing has instead helped people outside the US and in emerging economies such as China. 
"Money printing has been beneficial to people with money in emerging economies because a lot of funds flow into emerging economies due to the huge U.S. trade and current account deficits and it has been rather detrimental to the middle class and the working class because their costs of living have risen more than their wages."

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