[1rudeboy]

If we are selling them large quantities of such high value added items, how come we run a trade deficit with them?

If you cannot answer that question yourself, then you should probably avoid "economics" lest you embarass yourself further.

[dennisw]

If we are selling them large quantities of such high value added items, how come we run a trade deficit with them?

If you cannot answer that question yourself, then you should probably avoid "economics" lest you embarass yourself further.

An industrialized nation sells manufactures and technology (such as software) to underdeveloped nations. The 3rd world nations sells the industrialized nation: food commodities, mined materials, lumber and other raw materials. The advanced nation runs a trade surplus 

This is the way traditional trade relations go. This is the way we traded for years. But with clowns like you in charge of national economic policy we blithely run huge trade deficits of 850 billion and 40 billion dollar trade deficits with 3rd world pits such as Mexico.

[dennisw]

BTW Japan still conducts trade the way I described in post #115