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.
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In other words, we sell off $800 billion of our country each year.
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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 …
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(In other words, we're not like UK or Holland w/ large historical trade deficit due to huge foreign investment income)
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what am I missing here? Dollars out, goods in (net); dollars mostly come back in the form of foreign purchases of US assets
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The main pieces are net trade, net investment income, net new investment, and net borrowing
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ok, I'm missing in particular the US investment abroad component, which may be a net positive (ie increasing US ownership
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Net investment (I think) is negative. I.e., people are investing in US, buying US assets, more than reverse.
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I mean that total US ownership of foreign assets may be increasing at the same time as foreign ownership of US assets is incr
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