Another function of decline is the kind of blind complacency so characteristic of late imperial rot. Deficit ? What deficit ? So long as we have Chinese imports everything is fine.
You don't understand what a trade deficit means, it's not a deadweight loss. If you pick up an introductory economics textbook and learn what you're talking about you'll realize that you are being hysterical.
"Let London manufacture those fine fabrics of hers to her heart's content; let Holland her chambrays; Florence her cloth; the Indies their beaver and vicuna; Milan her brocade, Italy and Flanders their linens...so long as our capital can enjoy them; the only thing it proves is that all nations train their journeymen for Madrid, and that Madrid is the queen of Parliaments, for all the world serves her and she serves nobody."
(Prominent Spanish official - Alfonso Nunez de Castro in 1675)