Here's the thing though — this logic falls apart under scrutiny. A nation's external balance doesn't exist in a vacuum. When foreign capital floods in as excess savings, the domestic side has to absorb that shock somehow. The adjustment is inevitable. Pretending otherwise? That's the easy route, sure. But it's also dead wrong. You can't ignore how external imbalances force internal recalibrations — whether through inflation, asset bubbles, or shifting consumption patterns. The math doesn't lie.
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FOMOmonster
· 4h ago
Sister, this trap is full of logical fallacies... As soon as foreign capital comes in, someone has to pay the bill, there's no avoiding it.
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MetaReckt
· 17h ago
ngl this logic really doesn't hold up... foreign capital is flooding in, and the domestic market has to catch a falling knife, either inflation or asset bubbles, you can't avoid it.
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AirdropHunter007
· 23h ago
Wow, as soon as foreign capital rushes in, it has to take a hard hit in the domestic market, and there's no way to dodge it. This guy is absolutely right.
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OPsychology
· 11-30 14:00
Well said, the external imbalance cannot be avoided, it ultimately has to be digested internally. Those people in the crypto world are still fantasizing about a depeg every day, it's funny.
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GateUser-1a2ed0b9
· 11-30 14:00
ngl this is why the argument that external debt is no problem is all nonsense... money has to flow somewhere, it can't just disappear into thin air.
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WhaleWatcher
· 11-30 13:59
You're right, there's no way to avoid it. When foreign capital pours in, there has to be a place to digest it; whether it's inflation or an asset bubble, one has to be chosen.
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RadioShackKnight
· 11-30 13:57
To be honest, the theory of external imbalance is just self-deception, and sooner or later, the bill will come due.
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GateUser-addcaaf7
· 11-30 13:51
That's right, external imbalances will indeed be passed on for internal digestion, and there's no escaping it.
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DefiEngineerJack
· 11-30 13:45
ngl this just sounds like traditional macro cope. externalities don't adjust themselves—they cascade. you're describing symptoms, not the root cause. where's the mechanism that actually forces equilibrium? show the formal model or it's just hand-waving
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Degentleman
· 11-30 13:32
This logic is indeed untenable; the external imbalance has to be borne by the internal parties, and there's no way to escape it.
Here's the thing though — this logic falls apart under scrutiny. A nation's external balance doesn't exist in a vacuum. When foreign capital floods in as excess savings, the domestic side has to absorb that shock somehow. The adjustment is inevitable. Pretending otherwise? That's the easy route, sure. But it's also dead wrong. You can't ignore how external imbalances force internal recalibrations — whether through inflation, asset bubbles, or shifting consumption patterns. The math doesn't lie.