I actually had no idea that the trade deficit was close to $800 billion until hearing Trump's speech. Insanity!
-
-
The trade deficit corresponds to dollar outflow, and those dollars are recycled back through US Treasury and US property purchases.
-
In other words, we sell off $800 billion of our country each year.
-
Not quite, more complicated than that. But yes, we've a current account deficit in addition to trade deficithttp://www.tradingeconomics.com/united-states/current-account …
-
(In other words, we're not like UK or Holland w/ large historical trade deficit due to huge foreign investment income)
-
what am I missing here? Dollars out, goods in (net); dollars mostly come back in the form of foreign purchases of US assets
-
The main pieces are net trade, net investment income, net new investment, and net borrowing
-
ok, I'm missing in particular the US investment abroad component, which may be a net positive (ie increasing US ownership
-
Net investment (I think) is negative. I.e., people are investing in US, buying US assets, more than reverse.
- 2 more replies
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.