tag:blogger.com,1999:blog-10815380.post4932704150542587725..comments2024-03-14T12:42:51.995+00:00Comments on Chris Whiteside's Blog: Barriers to TradeChris Whitesidehttp://www.blogger.com/profile/02888720969479013951noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-10815380.post-1146477515432437972017-03-15T18:39:38.370+00:002017-03-15T18:39:38.370+00:00Exactly why I liked Mat Ridley's article. The ...Exactly why I liked Mat Ridley's article. The point he is making and which you are supporting, Jim, is absolutely right and is one which is not heard nearly often enough.Chris Whitesidehttps://www.blogger.com/profile/02888720969479013951noreply@blogger.comtag:blogger.com,1999:blog-10815380.post-32052021545025142212017-03-15T06:25:45.687+00:002017-03-15T06:25:45.687+00:00I could almost write an essay on this topic. For...I could almost write an essay on this topic. For a long time I have figured that imports are better than exports, and exports are just a way of paying for imports.<br /><br />Imports are real tangible things, things that take real resources to make or extract. In return for these nice things we give currency, or an IOU. (actually its an IOU nothing, but that's another topic, we will stick with IOU)<br /><br />So we get to the point where we have imported loads of nice things, and someone else holds lots of IOUs from us. So we export goods out, and low and behold the IOUs come flooding back.<br /><br />Some people argue that countries like China should be glad of our custom and we are buying all these Imports from them, as it gives them jobs. Have you ever heard such rubbish. Jobs are not an end, they are a means to an end. Very few people work because they love their job so much, they work to get paid at the end of the month, so they can buy stuff.<br /><br />Do you think the Chinese working in the washing machine factory's are thinking <i>"why do foreigners want these things? don't they have any rivers to wash clothes in?"</i> of course not. He would love to take one home, but its us foreigners who are buying them as we can pay more for them.<br />Just remember its IOUs here, so that means in the end they will have so many IOUs the Chinese can pay more for our products than we can domestically, though as you point out, its may well not be the person who made the washing machine that gets our export.<br /><br />I have stated before several times that no one wants more money, and its true they don't. What people do want is stuff they can exchange money for.<br /><br />Same rule applies to foreign trade, no one wants our money, what they want is stuff they can exchange our money for. And if you have lots of £ sterling because you sold lots of goods, then which market do you think you can exchange your £s for good stuff easiest? oh yeah, the UKs.<br /><br />Jimhttps://www.blogger.com/profile/00373005279697295131noreply@blogger.com