I posted an earlier article for RM on trade deficits. Unfortunately, trade deficits and money supply are related. Kind of complicated, but I think this guy has a pretty good explanation of the hidden tax:
http://www.financialsense.com/series4/part1.html
You will note, it is a game played by politicians to hide their overspending without raising "taxes". Unfortunately, trade deficits, budget deficits and monetizing the debt are all hidden taxes waiting to happen. That is why REAL CONSERVATIVES (not Bush) are concerned about deficits.
http://www.financialsense.com/series4/part1.html
You will note, it is a game played by politicians to hide their overspending without raising "taxes". Unfortunately, trade deficits, budget deficits and monetizing the debt are all hidden taxes waiting to happen. That is why REAL CONSERVATIVES (not Bush) are concerned about deficits.