"The way to do political, rather than cosmopolitical, economy is straightforward: consolidate the national balance sheet, treating the entire nation as a single corporation. Current account deficits then appear as losses. The notorious decay of nations which run a chronic trade deficit appears as a parallel with the notorious decay of corporations which run at a chronic loss. Similarly, the old mercantilist strategy of accumulating precious metals—much mocked by Adam Smith—appears as no more than the accumulation of retained earnings by a profitable polity."