You know they do. You have to fund the deficits, no matter how high the interest rate you have to provide to encourage some one to purchase the securities. And the trade imbalances, money sucked right out of your economy that isn’t coming back. How do you make up the difference, make more money.
Make sure you differentiate between the trade and budget deficit. The budget deficit is shrinking, so where is the pressure to raise rates?
And the trade imbalances, money sucked right out of your economy that isn’t coming back.
That money doesn't come back? Do the foreign dollar holders put it under their mattress?