[Alberta's Child]

It's not the trade deficit that's the problem -- it's the "current account deficit," which is basically the combination of the trade and budget deficits.

[NeoCaveman]

It's not the trade deficit that's the problem -- it's the "current account deficit," which is basically the combination of the trade and budget deficits.

The current account deficit doesn't include the budget deficit. The current account deficit is the goods and services trade deficit, often referred to as the trade deficit. As always the trade balance is always in balance as currrent account deficit (good and services) = the capital account surplus (foreign investment)