Ping!!
Fact 2: This raises the standard of living for those who live in the U.S. because we have more goodies than we could otherwise afford.
Fact 3: But it causes a large negative balance of trade for the U.S.
Fact 4: This imbalance is settled by the purchase of U.S. corporate and government bonds, stocks, real estate and by the making of other capital investments in the U.S. by the holders of the surplus dollars.
Bottom Line: We are buying goods and selling investments. There is no trade imbalance.
Questions:
This is the way it works isn't it?
What is so bad about it?
Pay no attention to doomsayers.
Just double all our deficits every year
And things will get better, and better, and better.
Things always improve after wars.