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Updated: July 1, 2025
On the one hand, only a flagging dollar can narrow the trade deficit by rendering American exports more competitive in world markets and imports to the USA more expensive than their domestic imperfect substitutes.
It often involves "captives" insurance or reinsurance firms owned by their insured clients and located in tax friendly climes such as Bermuda, the Cayman Islands, Barbados, Ireland, and in the USA: Vermont, Colorado, and Hawaii. Companies from manufacturers to insurance agents are willing to retain more risk than ever before.
Inflation thus indirectly enhances exports and helps close yawning gaps in the current account. The USA with its unsustainable trade deficit and resurgent budget deficit could use some of this medicine. But the upshots of inflation are fiscal, not merely monetary.
Persistent, unmitigated support for the USA in spite of French-German exhortations will jeopardize the new and aspiring members' position in an enlarged EU. Accession is irreversible but they can find themselves isolated and marginalized in decision making processes and dynamics long after the Iraqi dust has settled. EU officials already gave public warnings to this effect.
France and Germany entangled in entente and Ostpolitik, respectively cozied up to the Kremlin, partly driven by their Euro-communist parties. So did Italy. While the Europeans were busy kowtowing to a repressive USSR and castigating the USA for its warmongering, America has liberated the Soviet satellites and bankrolled their painful and protracted transition.
The USA in geographical proximity to Brazil and a self-described ardent champion of free trade takes in less than 15 percent. The problem with farming in the developing world is its concentration on cash crops, whose prices are volatile. This subverts traditional agriculture.
Where we reconcile the needs of a clean environment and a strong economy. Where "Made in the USA" is recognized around the world as the symbol of quality and progress, And where every one of us enjoys the same opportunities to live, to work and to contribute to society. And where, for the first time, the American mainstream includes all of our disabled citizens.
Consumers learn to expect lower prices i.e., inflationary expectations fall and, with them, inflation itself. The intervention of central banks only hastened the process and now it threatens to render benign structural disinflation malignantly deflationary. Should the USA reflate its way out of either an impending double dip recession or deflationary anodyne growth?
The latter draws pictures of all the leading royalty, and among the Yadavas, Usa recognizes her love, Aniruddha. The confidante agrees to bring him to her and going through the air to Dwarka, finds him sleeping, dreaming of Usa. She transports him to Usa's palace and on waking. Aniruddha finds himself alone with his love.
The Czechs, Poles, Hungarians, assorted Balkanians, even the Balts have merely switched empires. There are other reasons for these countries' pro-Americanism. They admire and consume American technology and pop culture. Trade with the USA and foreign direct investment are still small but both are growing fast.
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