4 ms·
What point? That America runs a trade deficit with China? That isn’t news. Have you looked at our trade relationship with Japan? Germany? It’s been negative
by master_crab 4y ago
What point? That America runs a trade deficit with China? That isn’t news.
Have you looked at our trade relationship with Japan? Germany? It’s been negative by tens of billions for decades. No one claims they are depleting America of money.
Trade deficits aren’t a zero sum game. Countries end up putting those earnings back in American securities, burning that money on useless investments (particularly relevant to China right now) and many of the inputs/outputs (like services which America excels at) aren’t ever properly recorded.
- bombcar 4y agoTrade deficits are wonderful. We print worthless dollars and other countries give us real valuable things in exchange. Win!
- master_crab 4y agoLol. Worth-less to that buyer from Wichita, but worth-more than Renminbi to that seller from Guangzhou.
- bombcar 4y agoOh, sure, there’s reasons they’ll take our bucks. And if what we’re buying is “value add” and not basically raw resources, there can be other issues. But slurping up the middle East’s oilshake whilst sitting on our giant reserves is a good trick whilst it works.