Not only does Vietnam have a large and legitimate trade deficit with China, it also has a large black-market deficit.
In the case of emerging technologies like OLAE, governments are justified to stimulate the development of such technologies because firms in the marketplace will invest suboptimally: the so-called market deficit.
According to Barclays Capital Markets analyst Nicholas Snowdon, the sugar market deficit in the 2008/2009 harvest has lifted prices on the front-month ICE contract by nearly 50%–and fundamentals for the 2009/10 harvest are looking more enticing.
But because of declining sales and income tax receipts and a flagging stock market, the deficit has steadily grown -- by more than $113 million in the last month alone, state officials said.
Ever since the rise of market fundamentalism, deficit hawks, and the passage of the 1990 Budget Reconciliation Act, the federal government's ability to make long-term investments has been critically weakened.
In a further effort to reassure the markets, more deficit-cutting measures have been included in the past 48 hours, including pension cuts and additional health charges.
"He could give you a half-hour lecture about the ill effects of price-fixing on the market, including deficits and the black market," says Rory MacFarquhar, an executive director at Goldman Sachs in Moscow.
Mr. Obama often speaks of the traditional liberal goal of trying to redistribute the tax burden to reduce economic inequality, and at least in his public pronouncements has not emphasized the market-friendly, deficit-reduction aspects of the economic approach credited to former President Bill Clinton and former Treasury Secretary Robert E. Rubin in the 1990s.
Every emerging market has blared over the last week, but it is the emerging market current account deficit countries that have suffered the most.
The Zapatero government has staked its credibility in the markets on hitting deficit targets.
