re: Breaking: China offers a way to eliminate US trade imbalance. HAIL TRUMP!

quote:

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We have allowed our trading partners to use the American people as their social security system,

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Nothing is further from the truth than that statement right there. The simplest way I can explain it to you is they send us capital goods whether it is Christmas lights or high grade electronics and we send them US dollars. That is a good deal for Americans because we print the dollars.

If somehow we could count the debt of ours they buy toward the trade deficit for accounting purposes you would see the deficit is not near as much as you think.

Even when they do not use their excess dollars to buy our debt they are using them to buy things like oil on world markets and the dollars sort of find their way back one way or another.

The deficit that is important is the spending deficit. Imagine the investments in the US our trade partners would have to be making and the goods they would be buying with their excess dollars if the Treasury was not making trillions of dollars of debt available for them to buy.