Bill Jencks

Obama's Tire Tariff Could Help the U.S. Win a Trade War with China

"The issue at stake between the United States and China is GDP, which as Adam Smith pointed out is the real "wealth of nations". Balanced trade would lead to investment in American production which would enhance America's GDP. Growing trade deficits would keep us in a state of perpetual depression. "

This statement is very peculiar. GDP is indeed the wealth of Nations, but is it good for that wealth to be wholly dependent on foreign credit feeding insatiable US debt, as compared with China, whose economy is wholly based on production with the reward of savings? Do you regard America's current deficits as no problem then? Do you regard America's national debt of $12 trillion OK? Do you regard America's Fiscal Debt of £65 trillion trivial and manageable? It is also mainly US govt. Keynesian policies that are creating all this unmanageable debt, not just trade with China.

Hardly a balanced economy, in fact Adam Smith's jaw would probalby bounce off the ground and hit the ceiling if he saw America's economic state today.