They both do not know what they are talking about.
First, the concept American's hold as the trade balance is false in the sense that if money is going out of the country things of value are coming in, we are making a profit every time we buy something, so because there is a 'deficit' does not mean we are losing something we are actually gaining something. It may not be money, but it is valuable (which money is no more valuable then what it costs to print, what makes it more valuable is because it can buy a product or a service) products or services.
Second, if we have a surplus in trade we would have to produce things cheaper than other countries. Since we are the 'richest' country that is almost impossible unless we create a monopoly in the sense that people have to buy from America.
The econ theory in this post is fgsfds.
hey /b/tard go back to 4chan.
Schiff knows more about economics then everyone on this site combined.
The do what they are talking about. Trade imbalances may not be all that bad in general, but we have some special circumstances that make them pretty ominous now. Enormous credit expansion, consumer goods vs. commercial investment, and large amounts of debt being held overseas make current imbalances pretty scary.
In the long run none of this is particularly scary, as the market can compensate, but it could add up to a few years of pretty severe price inflation. Probably some currency inflation as well.
I don't believe gov't need to do anything to combat any of this, other than reversing some of the policy that encourages poor economic decisions and put us in further debt as a nation.
Schiff's proposition is that those dollars are eventually going to come back to the US causing massive price increases.