RT interviews PCR on the Bubble Economy and the Failure of Laissez Faire Capitalism
PCR section of the program starts at about 2:15 mark and runs to 12:50.
In explaining the difference between GNP and GDP, I misspeak when I say that GDP does not include our negative trade balance. What I meant to say is that GDP does not include
the negative consequences of our trade deficit. Those consequences are the trade surpluses that foreign countries have with the US. As these surpluses are invested in
US income earning assets, the result of US trade deficits is that the US ends up paying more to foreigners on their holdings of US assets than foreigners pay to the US on our
holding of their assets. The negative balance is deducted from GNP, but not from GDP.
After the crossover occurred, the US shifted from reporting GNP to reporting GDP, because GDP was larger.