Reply To: Trade deficit


Thanks for the help! Most of what you said I had a fair grasp on beforehand, but I still appreciate it.
Maybe my question is “how does a business buy a foreign product without funds?” It wont. But then the government will want to get involved in order to keep the economy afloat. So wont the government print up a few hundred billion dollars and toss it into the private sector so that they can continue to buy foreign goods until we meet a trade balance? Once the foreign governments have dollars, they have nothing better to do but to buy U.S. treasuries.

To me, this makes sense, but maybe I’m way off.