"The U.S. trade deficit is a bigger threat to the domestic economy than either the federal budget deficit or consumer debt"
And its outcome?
"Political turmoil".
And the timeframe for this turmoil?
"Pretty soon, I think there will be a big adjustment"
Needlessly scary emphasis all mine, highly relevant scary views all Buffett's.
1 comment:
A little too alarmist, imo. Many Wall Street economists would not agree, and there are some academics, too (e.g. Ricardo Caballero at MIT), who are taking the contrarian view. Very funny article in the Economist this week about the Current Account Deficit.
http://economist.com/finance/displaystory.cfm?story_id=5408129
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