[Toddsterpatriot]

The budget deficit is a problem, because it has to be funded by someone, no matter what rate of return you have to pay them.

And the current rate on a 10 year Treasury bond is 4.71%. Scary!

When that happens all hell breaks loose.

What would happen?

The trade deficit speaks for itself. Money gone forever.

Except they reinvest those dollars in America. Are you ever going to explain how Federal deficits and trade imbalances cause inflation? Or have you realized your mistake?

[WILLIALAL]

Again, you have not explained the lowering value of the US dollar! There has to be a reason. It was the premiere currency of the world for decades and now there is recurring talk of nations switching to the euro to replace the dollar. Just misbegotten economic understanding?
When foreign governments or individuals invest their dollars in the US, they expect a return, either in yearly profits = money paid out in dollars leaving your country, or to sell those assets at some point at a profit= money leaving your country. Its that simple. Trade deficits are wealth leaving your country. remember they could convert those dollars to euros on the open market, and see where the value ends up. That is why the dollar is going down.