This is interesting.
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Tuesday, May 6, 2025
America’s Growing Trade Deficit Is Selling the Nation Out From Under Us
America's Growing Trade Deficit Is Selling the Nation Out From Under Us
"We were taught in Economics 101 that countries could not for long sustain large, ever-growing trade deficits. At a point, so it was claimed, the spree of the consumption-happy nation would be braked by currency-rate adjustments and by the unwillingness of creditor countries to accept an endless flow of IOUs from the big spenders. And that's the way it has indeed worked for the rest of the world, as we can see by the abrupt shutoffs of credit that many profligate nations have suffered in recent decades. The U.S., however, enjoys special status. In effect, we can behave today as we wish because our past financial behavior was so exemplary—and because we are so rich. Neither our capacity nor our intention to pay is questioned, and we continue to have a mountain of desirable assets to trade for consumables.
In other words, our national credit card allows us to charge truly breathtaking amounts. But that card's credit line is not limitless. The time to halt this trading of assets for consumables is now..."
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