Re:EU leaders agree to cut emissions by at least 55% by end ...
by whimsicalism on Friday December 11, 2020 @01:02PM
(#25388637)
You're making a lot of pretty wrong economic claims and I think there are enough easy distinctions between Google and the market in manufactured goods that I don't need to spend a lot of time responding to that.
> If you are a net importer you have to take on loans otherwise you would not be able to purchase imports without any money.
Not apriori true at all. Imagine I am a country of one. I have $100 million of cash and export absolutely nothing. I buy an equity stake in some companies in some other country (Nigeria) and wooh boy it's fast growing and I'm getting 12% returns. I then spend all of those returns buying goods from China. I'm a net importer and yet haven't taken out a single loan.
If you are a net importer you have to take on loans otherwise you would not be able to purchase imports without any money.
The exporter country can spend the money on purchasing assets in your country. In the case of china the money you spent to buy cheap widgets will be used by the Chinese to buy American assets such as real estate instead of other consumer goods. This would be a good thing if it wasn't for stupid communities that make it hard to build more housing. Instead the existing housing stock gets inflated.