If we had restricted the money supply in the mid 1990s we probably would not have the same level of growth. You raise a separate issue about trade debt. I am not sure that is a measure of economic health. Some of our highest growth periods coincided with trade deficits. Just think about it.
Free trade is generally better for both partners.
Regards, Frank Frank Monaldo Contributing Editor, Conservative Politcs Check out the entire Politics area. I agree with that. The only problem is that the system contains the seeds of its own destruction and nobody, not even Greenspan, recognizes that fact, or at least isn't letting on. Some of our highest growth periods coincided with trade deficits. That is certainly true and is only logical.