There have been historical precedents where people have spent well in excess of what they've earned from foreign trading partners for extended periods of time and nothing has happened. The big wild card is you have a reserve currency (such as the dollar), how much extra room does that give you. That's the 100,000 question, or the 100 million question, or the 1 trillion question.
More Quotes from Drew Matus:
People are focusing on the impact of higher energy prices on the consumer instead of focusing on the impact of higher energy prices on inflation.Drew Matus
We've got some good news in this report but it's likely to be short-lived. We can expect the large trade deficits we've come to know to continue for the rest of the year.
Drew Matus
There are figures that show roughly 50 percent of households have exposure to equities in some form, and clearly we would start to see a dip in consumer confidence and some retrenchment in spending from the recent sell-off, I don't think this is necessarily the beginning of a bear market.
Drew Matus
The Fed keeps trying to walk the middle course, and unfortunately that gives ammunition to people who think the Fed should be raising rates more and ammunition to people who think the Fed should be done.
Drew Matus
People are going to take advantage of the lower interest rates to buy big ticket items like automobiles. People are buying what's cheap. The impact occurs more in the luxury spending areas.
Drew Matus
There seems to be a fight about every nomination that Bush puts up. But even if it was a 51-49 vote, it's not like they can recall him.
Drew Matus
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