underscored

@underscored

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There's a persuasive argument that financial engineering helps secure global trade by allowing producers and consumers to unbundle risk, and it finds its nemesis in the potato.

FT Alphaville
1d ago

Even if one country is better at making everything, it doesn't have a comparative advantage in everything. That's impossible. Every country has a comparative advantage at something! That's why in the theory of comparative advantage, trade is balanced. In the real world, China's massive trade surplus means that trade is not balanced; much of the time, China isn't trading goods for other goods, it's trading goods for IOUs.

3mo ago

Underscored — save the words that stop you in your tracks.

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