One of you explain like I'm fucking 5 why a trade deficit matters

One of you explain like I'm fucking 5 why a trade deficit matters.

Just think. It can't be explained.

ass!
and the other ass!

It doesn't matter when line goes up and your country can subsist entirely of e-mail jobs, but when line goes down and your country needs to create some actual value to survive it becomes important.

Explain why you use Reddit vernacular on Anon Babble

If you have a trade deficit, how to you pay for it?

A large trade deficit can also lead to a country's reliance on foreign capital, which can make it vulnerable to changes in global economic conditions.

A large trade deficit can also lead to a country's loss of economic sovereignty, as it may be forced to adopt policies that benefit foreign interests rather than its own domestic economy.

From the thumbnail I thought I saw two gay black men standing in a bucket

Which the why the US (massive lithium deposits, massive agricultural industry, massive ranching operations, massive mining operations, enough fossil fuels to be energy independent like it was 5 years ago) will be fine

live on Island

have coconuts

Island next door makes shiny trinkets from sticks and leaves

the people on your Island like the shiny trinkets

the people on your Island buy shiny trinkets with coconuts

Pretty soon your Island is going to have no coconuts, the Island next door is going to have ALL the coconuts, and you're going to fucking starve.

If you go to a supermarket and buy food, you have a trade deficit with them.
You should try to force them to buy things from you by bullying them.

The service economy is going to make us rich. We'll all have jobs mowing each others lawns and cutting each others hair

The deficit doesn’t matter so much as what the deficit was created by, which is basically the siphoning off of critical valuable American industry by foreign countries, namely China. People used to think you could just replace industry like manufacturing with service industry because service industry made more money, but it turns out that it’s not that simple because people don’t move from one industry to another and manufacturing in particular has certain positive spillover effects other industries don’t have while many services have arguably negative spillover effects. And so this dynamic is how you got an America where tech and professionals on the coasts have all the money while middle Americans die slow deaths of despair with no jobs and towns flooded with drugs.

While Trump touts the trade deficit, it's really just rhetoric for what he actually wants - onshoring of critical manufacturing industries related to pharma and military.
COVID exposed the weak supply chain for critical needs in America, if we continue offshoring our industries then, when we ineviably lose global hegemon status, our geopolitical opponents will win without ever firing a shot by simply shutting off access to resources.

If your household is 30T in debt you should probably stop paying Mcdonalds to make your food and stay at home cooking for yourself.

why a trade deficit matters

it doesn't, and tariffs won't address it anyway.
Trump is just shaking out the piggy bank for money to give Israel.

us flag

thinks of nothing but naked niggers

Checks out.

You should do that regardless of debt.

It was actually our superpower with the hegemonic currency that we're able to run one so high

Get your head out off the gutter. All I saw was two horses, I didn't even notice until you said something.

A large trade deficit can also lead to a country's reliance on foreign capital, which can make it vulnerable to changes in global economic conditions.

Literally impossible to happen due to US dollar status

Because you're depending people who may change their mind on whether they like you for the shit you depend on.

The service industry makes more money... for elites.
A substantial component of the dissolution of the middle class can be attributed to the offshoring of well paying factory jobs beginning in the 70's.
So the upper class got the former middle class' piece of the pie by reducing labor costs.

Allowing capital or labor to enter or leave a country freely destroys the country. Dissolves it into whatever larger entity holds on.

This is why the EU has the four freedoms.

Also trade deficit matters when its not balanced elsewhere because it has to be paired with debt spending.

One one hand if country imports more than it exports, it means that money leaves the country. Another problem is that there could be local jobs that make stuff.
In reality, USA has infinite money anyway and low unemployment, so it doesn't matter.

So so in your mind trading away all your coconuts is fine if you get 5 timers the amount in trinkets thus having a trade surplus

(OP)
during trade deficit, domestic cash is exported (leaves) the territorial jurisdiction of the US government and becomes untaxable. by fixing the trade deficit, no domestic cash is exported becoming untaxable. ultimately US trade deficit must be financed, either privately or publicly, in some form to ensure there is enough cash inside the US economy to maintain the US economy despite annual losses of cash to export. long term, the effect of trade deficits is to replace trade goods (like consumer goods) with capital assets (stocks and control of companies). we get toilet paper, they get aramco. bad trade.

only if you consider the US dollar and the country to be the same thing, which they aren't. do you think the US is in charge of the US dollar? the US dollar is foreign capital.

If trade deficit doesn't matter, then can I have $500?

If you dont have a job to get money from elsewhere than yes.

You should try to force them to buy things from you by bullying them.

Would it be covered by NAP?

becomes untaxable

there's the real answer

OUR FUCKING ISLAND HAVE INFINITE COCONUTS CHEAT CODE YOU RETARDED ABOMINABLE SUBNORMAL MONGOLOID BASTSTARD. YOU AND EVERYBODY WHO VOTED FOR THE ORANGE RETARDED WHO APPARENTLY DID NOT UNDERSTAND HOW GREAT WAS TO HAVE INFINITE MONEY GLITCH, NOW WE ALL ARE GONNA SUFFER BECAUSE NONE OF YOU COULD CONTAIN THEIR AUTISM INCLUDING DRUMP & TEAM, YOU ALL DESERVE A VERSION OF HELL WHERE YOU GET RAPED TO DEATH EVERY TIME YOU FAIL TO UNDERSTAND A SINGLE QUESTION ON AN EXAM

I'd rather they explain to me why a good trade deficit matters but not a services one when the entire fucking Silicon Valley sells services.

US can just print money lmao
Trade deficit is the greatest thing in the world

That's exactly right, and only Temu products are of actual value

made the federal reserve private so greedy and corrupt politicians don't print one gorillion dollars at the minimum emergency like every other shithole on earth, a careful thoughtful plan

You

THE FEDERAL RESERVE ARE ALIEN FROM OUTER SPACE WANTING TO SLAVE US LET'S GIVE CRYPTO COMMUNIST IN US GOVERNMENT THE ACCESS TO THE PRINTING PRESS, THEY CAN BE TRUSTED AND NOTHING WILL BE WRONG EVER

^this is what you are asking for

What Europe was planning was to combine with China. When these two are economically linked, it would turn Asia into a massive economic behemoth that made America look like a midget by comparison.
At that point, America would be like the strange uncle living halfway around the world from everyone else and cut out of everything entirely. Because America would have no manufacturing and no production, there's no reason to even include them in the global market.
At a certain point, America was going to be "rugpulled" by Europe and left with nothing but debt. The country would be nothing but a smoking crater. If America has critical manufacturing, there's no way to cut it out of the global economy

those aren't american origin services. massive portions of the silicon valley workforce has been offshored, outsourced, and automated. every quarter there are massive layoffs of domestic techworkers. all the tech cities have downtown ghost towns now. tech companies are among the vanguard in offshoring their earnings and liberating themselves from US taxation. trade deficits provide liquidity for the foreign USD untaxed institutional investor capital market. CFO evaluates whether to do short term funding in dollars or yuan, knowing the trade deficit and foreign exchange rate are both pegged by US and China central banks together. turn off the free money faucet. only non-US citizens and non-US operations are benefiting.

TABLES FLIPPED NOW WE HAVE ALL THE COCONUTS BITCH

For how long?
How much longer do you think this can last?

As the world reserve currency and everyone having US debt, they can only pay back their US denominated debt with US dollar. We off shore everything because its not profitable to produce here. The rest of the world set up their economies to export to the USA and we buy their shit. The USA actually does not really produce anything and so we become reliant on imports. Since we dont produce anything, we just keep using credit cards to subsidies the rest of the worlds economies. We go farther in debt to buy Chines widgets while everything gets more expensive due to inflation and Chines citizens are investing in US real estate using the money we gave them for one example. This leaves the working class Americans with higher prices and lower wages. Where as Chines citizens have low wages but also low prices because they make all their own shit. Its a bit more complicated than that, but see how much milk costs in China vs the USA.

We can print money forever

Ok, why can't government print enough money to give every one of us $10 million? We could all be rich!

We can't print money like that, goy!

For as long as other countries keep giving us stuff for our printed money
But I guess Trump decided to end that for... Some reason

wow, why does everything suddenly cost more?

printing leads to inflation you fucking retard
do it enough and NO ONE will want your toilet paper currency.

Forever look at Japan. It's all numbers made up. If this was backed by material goods maybe it would matter.

Answer the question.

Except we just showed the world that USD is the only currency that matters, still.

impossible. but from what I gathered, wealth is impossible without trade imbalance. because of the size of world market and complexity involved there is always imbalance so there is opportunity for profit.

But for US the real issue is not international imbalance but regional one. The big cities have a huge trade imbalanced with the poor hinterlands. On paper the cities send tax money to these
regions. But in reality they extract all
profit and population from these regions.

What if we aren't anywhere near running out of coconuts though? Should we tax trinket purchases?

Is that what your tiny leaf brain got from my analogy?

Forever like cookie clicker

Forever

If it worked forever, Fiat currencies would never fail.
Yet they always do.

30T in debt

half the country impoverished

"akshually this was working just fine"

The concept of giving away more than you get in return isn’t already fucking retardedly simple for you?

It isnt a bad thing. You have a trade deficit with your barber. Trump tards are idiots

do it enough and NO ONE will want your toilet paper currency

No one wants our money now

Couldnt you just tax them more?

I understand that lets say a volkswagen has a turnover from lets say 270 billion while employing 650.000 people and that facebook has a turnover of 200 billion and employs 74000. Thats a big problem indeed. Tax would solve that? Tax them, use that money to create jobs and improve social benefits?

No only shit nations currencies do. I've yet to see one fail in an advanced economy because they simply make or produce so much it doesn't matter.

One look at Tokyo and you'd never guess they have 216.2 % dept to GDP ratio, the US isn't even up to 150% it's more like 110% now.

Japan is pushing 225% with no problems. 600 trillion yen economy was 6 trillion dollars now due to currency evaluation it's 4.2 tillion but even now you can see how flawed and ridicilous all these statistics are.

If yen had it's dept in Dollars it would have literally shave off 33% of it'd dept in less then a year.

Now imagine that you have trade deficit with your barber, with every other commerce you interact with, and that your income isn't enough to cover the deficit. What happens then?

What kind of retardation is this? You don't pay your trade deficit.

It doesn't

Deficit isn't debt retard.

1945

Who's ready for WW3

Maybe not immediately, but eventually, as your country gets poorer and poorer, it will be.

A trade deficit means that you buy more from other places than you sell to them. This means that there's a net trend of money leaving your economy and flowing into another economy. That economy profits and gets richer, while your economy gets poorer. Or to put it another way, it costs you money to do business with that country.

Generally speaking a trade surplus is good because it means your country is becoming wealthier and likely using that wealth to invest back into the country's economy. Maybe an exporting business expands, creating more jobs. Maybe it invests in infrastructure that improves your lives, funds R&D to make better products, etc. A trade deficit is like a small cut that won't heal, slow bleeding you out.

The world's trade economy is built on the fact that the US has a colossal trade deficit with basically everyone else. The US consumes a huge amount of the world's exports, but its economy grows faster than it can spend, so despite constantly bleeding money into other countries and literally fueling their economy, the US never runs out of wealth and prosperity to spread around. It's a neverending fountain of gold, and many wealthy and developed countries have built their whole economy assuming that fountain would never run dry. This is why USD is the world's reserve currency.

Trump wants to essentially eliminate this trade deficit entirely and redirect the fountain of wealth pouring from America, back to America. So rather than just barely outgrowing its expenses, it would enjoy the full benefits of its great economic growth. However, as a consequence of these long-standing trade partnerships, the countries dependent on the fountain of US wealth also have a lot of leverage over the US economy. Trying to sever that connection as suddenly and violently as Trump is doing shocks the world's market and exposes the US to all of that foreign leverage. Nobody is really sure how prosperous the US economy will actually still be after all of this

No. You're just retarded.

It is when you use debt to create that deficit in the first place.

No only shit nations currencies do.

Which is every Fiat Currency is history because Fiat currencies are shit.
They are meant to fail because Fiat currencies combined with fractional reserve banking is way to loot a nation of it's wealth.
Eventually you run out of wealth to loot and the currency fails.

You're gonna have to explain that one to me. How does the US owe money to the penguins again?

create jobs

We're not communism how? What jobs? The answer in communism was build factories. What jobs do we create now? Your factories can never compete with China or India, so whats the majority of the population supposed to do? And factories aren't just line workers they're administrators, research, cleaning staff, mechanical staff, they factories that make the machines for the factories so you get mechanics and other specialized personnel. You get the idea Factories have a very large labor footprint in terms of job opportunities.

improve social benefits

Doesn't actually provide stable incomes to your working population.

You get exactly what Califonia has or Dubai has. You get an incredibly wealthy elite and their loyal servants. They're living a really good life, but then the rest of the population literally needs to be slave tier labor like the Californian illegals that work in agriculture because there literally no "middle class" jobs.

You won't tax or social benefit people into the middle class it doesn't work like that.

One of you explain like I'm fucking 5 why a trade deficit matters.

It's neccessary because the Global economy needs USD reserve currency, so we "print" or go into debt spending , this money enters our economy, we then consooom cheap Chinese shit, so we export our dollars and other countries get our dollars in exchange for their goods. They then use those dollars to buy our Treasuries to prop up the whole debt based game. So when you have the Reserve currency, you need to run a trade deficit or foreigners can't buy our treasuries, if they can't buy them then yields go up, our currency gets destroyed as we resort to buying our own debt with money printer.

Deficit = wealth transfer

That's like saying you don't pay for your loans or interest on your loans.

You don't as we can see. If your theory worked EU, US, China would have collapsed ages ago.

? Trade deficits aren't loans retard.

due to US dollar status

Not really. What sets you faggots apart is that you´re impossible to invade by anyone relevant.
This also means it´s impossible for YOU to invade ANYONE relevant.

we offshore because the US isn't able to be profitable

This is simply false, our elites offshore because it's MORE profitable to pay 3rd worlders peanuts rather than support the US populace.
In almost any industry you can find an american alternative product that's at least competitively priced.
ie Nike's costs to produce and ship shoes isn't meaningfully more than the $15 generic import shoes at Walmart, which means the margins on them is simply insane. Our elites and magnates stood to make less money by using US labor, but it's not a matter of competition.

Not a single good response

Let's put it this way Van Bommel

You trade with other countries because enough people in your country demand and are willing to pay for products from another country

In the past the products were not too elaborate and the trading partners were not exactly too many. However, history says a move like the one that Trump (4 year presidency) did it will destroy the global economy youtube.com/watch?v=C4CvLu8HA7I (5yo video)

Currently, countries not trade only simple product, we deal with state of the art technology and complex supply chains around the globe so repeating the same mistakes they did 90 years ago will most likely create even a bigger disaster. youtube.com/watch?v=Y__2UsC7T-I

Answering your question. The biggest countries even in a globalist economy always look for dominated every sector, to be the first in the world. Trade deficit means you're no longer able to provide to your own people the goods and services they need or they believe their need so your country economy performance is too vulnerable to foreign shocks and more important your position as the biggest country in the world in threaten by one or another nation. In this particular case, China.
This will be the biggest happening in 2000s till WWIII

If we have a trade deficit it means we are not getting our money back. This means we are spending more than we are making. The only reason we are able to have deficits like this is because everyone still values our currency as the world reserve currency. We buy their products with a credit card and have been since we got off the gold standard.

We're not communism how?

Well you could use that money to create jobs to improve roads, infrastructure, railways etc. Just general shit in the country. Have you ever been in the states? Their roads are horrible shitty.

I don't know if its durable but what is the alternative. Get jobs back into the US so a pair of nikes will cost 400 dollar?

For the US it doesn't matter at all because the country has been able to sustain high trade deficits with low interest rates and inflation is still one of the most stable in the world. As a matter of fact, imports drive prices down so it's a good counterbalance for the money printing. The reason the US can get away with it while other countries cannot is because those countries can't print dollars and international commerce is in dollars, so running trade deficits means their international reserves start to deplete and they can no longer sustain their own national currency (which is done by buying and selling American dollars on the internal market).

30t in debt to whom? Who is gonna cash the checks? Who is gonna strongnarm the usa to pay their debt? Nobody can do that right? So why even keep playing this debt game, just say: from today on, we have zero debt and be done with it.

If you spend more money than you make that is a deficit.
If you don't have money to pay for it, you need to incur debt in order to pay for it.
If America's trade deficit wasn't resulting in debt they wouldn't be sitting on over $36 Trillion in debt fuck nuts.
How can you be this fucking dense?

>If you spend more money than you make that is a deficit.

No that's a debt dumbass. A trade deficit is just the difference in your imports and exports. You run a trade deficit with your barber because you don't sell anything to them. Does that mean you owe them money?

It doesnt

30t in debt to whom? Who is gonna cash the checks? Who is gonna strongnarm the usa to pay their debt?

They are already paying interest on that debt.
If they default, all that money that they printed comes back to the US and causes hyperinflation.

Sure, I should have said AS profitable. But keep in mind when these companies structure themselves around cheap labor like this. They use the saved profit to further leverage themselves, so they find themselves in a position of not being able to go back without having massive debt issues.

You are aware that the US dollar is fiat currency printed by the US government, right? They don't need to incur in debt for sustaining trade deficits, they just print it.

How can you be this dense?
Nobody can be this fucking stupid.
Are you trying to tell me than you can spend more than you earn and not owe money?

See

And power grid. 60%+ of our power grid is manufactured in China.

But it all sounds like fictional things, like digital virtual things. Army is a physical thing, how can we let the fictional world have this much power over the real world?

Yeah you're wrong. You're not spending more than you're making retard. That's not where the national debt comes from.

Theoretically yes, they could.
The Fed is made of the member banks.
So all the big American banks have shares in the Fed.
But that would also require a reset of the entire financial system.
And it also doesn't change that if they default,nations might stop trading in dollars, which would cause dollars to flood back to the US causing massive inflation.
So to avoid hyperinflation it would require a buy in from most of the nations holding and trading significant amounts of US dollars.

It doesn't actually matter, but unionized factory jobs can pay well and if complaining about trade deficits makes it easier to have unionized factory jobs then you should pretend to care.

But why keep hold of the dollar. When you take it all down you make up a new coin name and start over all value based on gold or as hitler did it on work? USA has european brains and creativity, they will always create markets with new tech and shit. Other countries will always want to have that shit

national debt directly translates to: how much of a country is not owned by the people anymore. this makes instant sense if you consider money==power. instead of your government spending the money it ends in some banks pockets instead and they get to do whatever the fuck they want with it. sometimes this could even be beneficial, but experience shows extreme greed usually rapes everyone, a free competition is the law of the jungle, if im larger than you i get to eat you. the current negative example would be the big real estate bubble thats cooking all over the west

But what if they stop paying interest too. Who is gonna force them?

You know a good chunk of the national debt is owed to US citizens right? People who buy bonds?

The national debt says otherwise, the m2 money supply says otherwise. The fact that the S&P500 chart looks the same as the M2 money supply says otherwise. The national debt keeps increase because we keep taking out debt. This is such common knowledge that the USA is racking up debt tells me you are either baiting, retarded, or a shill.

It is all fake and gay, its why the world is so fucked up and everyone keeps getting more and more poor. We let it happen because boomers worship kikes and kikes profit off of selling debt to other people at interest. Most people on this fucking planet do not know how compounding interest works and live beyond their means thinking cheap credit will last forever. A stock in Nvidia only has value because someone is willing to buy it. Stocks are the same thing as NFTs at this point because its all speculative. But if someone is willing to buy it off of you, you can buy land with it. I though someone from the Netherlands would understand this kind of psychology after the Tulip mania.

Take Canada vs US trade deficit. We sold the US $482B and the US sold Canada $441B. Oh no the US has a $41B trade deficit with Canada. Canada are raping us!!

WTF.

POPULATION

The US is 10x the size of Canada. Canada has 39M people and the US has 340M. So Canadians buy $11,300/person from the US. The US buys $1,400/person from Canada.

TYPE OF GOODS

Canada is basically an input goods shop for the US. We sell the US wood, steel, oil, fertilizer .... these are all inputs for the US to turn into goods for sale. People will tell you the goods are equal, but they aren't. We are cold up north and grow trees slowly. Trees need fucking acreage to work. All of Canada is right at the US border and then our north is farming trees of pumping oil. Do you want to turn NCarolina or WVirginia in a stripped forest? Do you want to drill up Alaska? Should we recreate the rust belt in Pittsburgh/Bethlehem?

This is Canada taking 'advantage' of the US. We had a few high tariffs on some foods if limits were reached - they never were reached. It is to prevent the US from dumping milk, eggs and destroying our farmers that feed us. The limit has never and will never be reached. Before Trump goods flowed back and forth with zero tariffs. We have always sold our crude oil at $8/barrel cheaper than the market price to the US. We would dump excess electricity to Mich, Ill, Ohio cheaper than the gov sells it to Canadians. We have always kept China out at the request of the US.

Don't let anyone tell you Canada took advantage of the US. Total bunk.

The national debt says otherwise, the m2 money supply says otherwise. The fact that the S&P500 chart looks the same as the M2 money supply says otherwise. The national debt keeps increase because we keep taking out debt. This is such common knowledge that the USA is racking up debt tells me you are either baiting, retarded, or a shill.

The national debt doesn't come from trade. I don't know why you keep repeating this shit. It doesn't even make any fucking sense. How does the US owe money to uninhabited islands?

start over all value based on gold or as hitler did it on work

What always cause this?
The old system collapsing.
Which it has been for at least for over a decade and a half..
The West has been taking on more debt and printing to keep the current system going.
So eventually a reset or collapse will happen.

If you spend all of your money buying things at the store and don'thave a job, you will be broke. That's a trade deficit. If you sell some things you make, you will make money. Duh. If you want to buy things from abroad without going into debt, you need to make stuff (jobs) and sell them abroad (trade surplus).

I just dont understand the debt boogyman they keep talking about in the news.

Just stop paying debt and stop paying interest. From today no debt. What burden would drop from a country, right? If europe and usa together stop paying debt to bankers. What the fuck will they do? Why not arrest all bankers from the Bank of international settlement, the BIS, arrest all those guys. Why dont countries do that?

Well hitlers system was interupted by bankerboi churchill and the rotschilds through the usa and sovjet union. That system didnt really have a chance imo.

Ghadaffi wanted to start his own independed shit, right? And saddam too? Alll got killed. So you take out the bankers this time before you start the change

Didnt really get a chance*

You're incredibly stupid. The trade is 100 percent settled and if there is any loans it would be private and with National banks.

The word deficit in trade deficit just means there is more imports than exports. It's not a monetary deficit like the government deficit.

Also, their national debt comes from the government overspending and under taxing. It's definately not because people are buying Chinese garbage in Walmart or Amazon

Be U.S.A.

Make everything locally

Everyone makes money and has house, wife, and kids. Envy of entire world.

Elect faggot jew lover Bill Clinton to Presidency

"Hey, y'all, what is we ship everything that makes us money overseas so minorities can do it instead?"

"No, Bill. Then we won't make any money and they will instead."

"Nonsense! We'll actually make MORE money but I won't explain how!"

Fast forward 30 years

We aren't making any money and they are instead. They call it a deficit and it's due to trading.

Pretty true, but also realize that around 1975 was when unions got very strong. Detroit was booming since the end of the war pumping out autos. Everyone was making huge money. Back then $50/hr rates with health and benefits, etc etc were compared against the South East working for $5/day, no breaks no food.

Its because you refuse to acknowledge what I have said here repeatedly "We buy their products with a credit card and have been since we got off the gold standard." All money in the USA is downstream of what the federal reserve loans us AT INTEREST, we take out these loans since WE DO NOT SELL MORE THAN WE BUY which makes it where the generated tax revenue IS NOT ENOUGH TO COVER THE LOANS. usdebtclock.org/

The corporations in the USA are HEAVILY subsidizes by the US government and have been bailed out at the tax payer expense everytime the market tanks. We do not practice capitalism in the USA. We practice Kleptocracy.

Last (you) that you get from me.

The united states gets its power as the world reserve currency because everyone got fucked except the US after the World Wars and gave us all of your gold. We then made it where you cant get your gold back and instead can give you dollars instead. Since we partied too hard with the gold and the jews stole it all. These jews have infested every aspect of our society and we are all goy cattle. What you dont get is that the Armies do not do what you have stated because those armies are controlled by the bankers. All wars are banker wars. Its why the West attacks anyone who does not have a Rothchild central bank in their county. These countries are Cuba, North Korea, and Iran. Russia paid off their debt to them under Putin in the 2000's and got them to fuck off. Not too sure about China however.

Its because you refuse to acknowledge what I have said here repeatedly

I've acknowledged it plenty of times. Your wrong. We don't pay our trade deficits. It's not where the national debt comes from. The national debt is spent on the welfare of the country. Shit like new infrastructure or the military. It's not a product of me buying bananas from South America.

They were trying to export free market capitalism to china, but we just ended up replacing our cushy union jobs with slave labor instead smdh

Is this fucking thread being invaded with Chines nationals using Canadian flags as cover to convince people that trade deficits dont matter? Tell Xi to increase tariffs on the USA by 500% so Trump can retaliate with 1000% tariffs. I dont want to see another Chines product in the store again.

I've acknowledged it plenty of times. Your wrong. We don't pay our trade deficits. It's not where the national debt comes from. The national debt is spent on the welfare of the country. Shit like new infrastructure or the military. It's not a product of me buying bananas from South America.

You have no clue how the game is being played.
You think that the nations in the West are Free Market Capitalist Democracies.
Rather than the Oligarchies they are.
That trade deficit is funded through debt and monetary expansion.
The ruling class in America and the rest of the West gets subsidized every year through the budget and gets bailed out from time to time.
For instance 2008, they were "Too Big to Fail".
So they were bailed out at the taxpayer's expense.
Then there was Covid which was the largest transfer of wealth in history from the masses to the ruling class.
This isn't the first half of the 20th century when most of the budget went to infrastructure.
Now every little of the budget is spent on infrastructure.
Instead it's spent on propping up the current ruling class and keeping them in power.

checked and lol'd

Nobody would be willing to lend money if they didn't receive an interest on it. People wouldn't buy bonds if they didn't expect a return. The US incurs debt just from maintaining its function. The banks exist as a centralized way to borrow and lend money. You're asking for a why, but this is basically just how the world works when money's involved.

The national debt comes from annual unfunded liabilities like Social Security, Medicare/Medicaid, the welfare state, and the $1T spent on servicing the national debt.
Where do you think trade comes into the debt upon first glance?
The US debt that's then issued, that other nations buy, still isn't the cause of the debt.

The trade deficit is not a debt. You throwing out red herrings doesn't change a fundamental fact of the economy. None of that shit you're bringing up matters one bit to the discussion at hand.

I'm not.

those are horses not donkeys dumb(ass) :^)

The entire board has been botted to an unprecedented extent since this morning. I haven't seen a single grassroots thread aside from the generals. Every day, just take a gander at the catalog and you'll see the shifts.

It doesn't

Deficits are debt if you don't have cash reserves to cover them.

where do you think the money comes from that is spent on imports?

it means you are getting ripped off on trade

You have a trade deficit with your local supermarket and a trade surplus with your boss' company

the US in this example is getting the coconuts for trickets they print

Retard thinks the American national debt is increasing because of Americans buying foreign products and not because of the government's horrendous spending habits and because of shit like them bailing out citizens and businesses during Covid.

A trade deficit isn't the same as a budget deficit.

Yeah, basically. If you survive off grid on a potato farm, then that would be autarky, but we all know about your gunpla habit.

do it enough and NO ONE will want your toilet paper currency.

the existence of the petrodollars means the rest of the world has to tolerate american money printing and eat up most of the inflation

We each have $100

Every week you buy $10 of my shit

I buy only $5 of your shit

How long until you're broke and I have $200?

A large hole in the head may lead to a life deficit

> why a trade deficit matters.

Money goes out of your country and does not come back. Soon you will run out of money .

It is like the nigger "But I had breakfast this morning".

Liberals and women etc , can't grasp the concept -- there should be a equal reciprocal relationship.
IE Japan completely mops the floor with the US on small electronics and cars . But the US has lots of Agriculture, cheap land and huge Agricultural machinery so they could produce Basedbeans and Rice for pennies a Kilo ..

>But Japan already Tariffs Rice and other food products --

So the money goes one way .

A trade deficit isn't the same as a budget deficit

Obviously.
But that money comes from somewhere.
The US finances it through debt and monetary expansion.
So it bails out the ruling class when needed so that they can maintain deficits.

Vast majority of that is internal. That is, it just exists in a ledger somewhere. It's all made up. Just arbitrary numbers on a computer.

If the USA has a trade deficit with other countries, where are the corporations getting their money from inside the USA? Are these corporations taking out loans? Where do they get those loans from? Are the people giving those corporations loans have enough collateral to back what they loan themselves? Who gives the loaners loans? Lets also ignore the various government bailouts. investopedia.com/articles/economics/08/government-financial-bailout.asp

americanfreepress.net/feds-covert-bailouts-exposed/

Trade deficit - You are the Country of Bumfuck, and you take in goods from Africa. We will say corn.

You make a deal with Africa for 5 years to take in corn at a set price to be paid in increments until the contract is done.

What you owe is your deficit. Now imagine the Country of Bumfuck has thousands of trade deals. The part that isn't paid in full to the exporter is your deficit.

we need a tarriff on israeli gay porn.

If the US didn't have a trade deficit, how exactly are we supposed to use USD as a global exchange currency?

I mean if the USA imports more dollars than they export (trade surplus) and other countries can't print dollars, eventually there would be no more dollars in circulation to trade with.

It doesn't, this is all to get businesses to manufacture in America again.

So lets say I'm Belgium. And I make some fucking great chocolate. It's amazing. But it costs a lot to make.
Now lets say you're America. You make chocolate as well but it's significantly cheaper than my chocolate. Even if it has a worse quality, if I allow it to sell at the price you want to sell it at in Belgium, my chocolatiers will no longer be able to stay afloat.
So what I do is put a tariff on your chocolate that makes it more competitive with my artisan chocolate even if you want to sell it at an extremely low price. This means that the chocolate from my world famous chocolatiers won't be squeezed out of the market and Belgium chocolate won't disappear overnight in the market.
Now this is how tariffs have worked for years. Many countries have tariffs to protect industries and institutions the government thinks are important and should be preserved.
So pre-trump tariffs were usually on a type of goods basis. Trump however did not like this. He wants a free market where there are 0 tariffs on american goods being exported which will allow america to manufacture and sell goods without hurdles to overcome globally.
He seeks to do this by first raising tariffs on all countries that have goods tariffs against american products.
His hope is that those countries who's primary customer is america, will be scared at the idea of their biggest buyer essentially not buying as much product from them (example China) and will ask for free trade agreements with the US where there are no longer tariffs on american goods.
It's essentially a strong arming bluff tactic in order to force his trading partners to drop all tariffs on american goods. If it works, american goods will regain a foothold in exporting to foreign markets. But if he fails he will have to walk back his tariffs, beg for forgiveness from his trade partners and eat economic losses of which there will be many.

But thats how the system at the moment works. What if big countries would say no more, then a domino effect would occur. Other countries would join in. The problem what other anon said is the banks own the army, so you have to find out which generals are sucking banker sick, and kick out the jews i guess from the usa?

However you try to find a solution, you always bumb into jews orchestrating this shit.

The US government subsiding things to keep prices low is such a small % of the debt generation compared to the to the national debt that I can't find any answer besides
"Technically it contributes, but it's completely overshadowed by budget deficits and financing of public debt (which is shit like business loans and bail outs)."

You run a trade deficit with your barber because you don't sell anything to them. Does that mean you owe them money?

Yes, you do dumb shit. And if you can't pay the money you owe them, then you have to go into debt.

Hair cut costs $x

Bank balance < $x

That's debt you mongoloid.

Government gives handouts to businesses and individuals, those people buy foreign goods, debt and inflation go up, while the money leaves the national economy. Part of the problem is government spending, and part of the problem is a leaky economy. Trump is fixing both.

the growing interest payments parasitizing on your budget are real
usdebtclock.org/

Congratulations, now you know why a nations currency being the world reserve currency only lasts about 100 to 150 years until they. The nations wealth gets sent off to other nations until they cant debase their own currency anymore.

until they implode*

That's tiny?
It also didn't keep the prices low.
It was the reason for all that inflation after Covid.
If you weren't the over 50% of the World's Reserve Currency it would have caused devastating inflation.
As it is, things are nowhere as cheap as they used to be.

Thanks god someone here is a real person.

checked
Yeah, since this morning the whole board is 99% bots wtf. I blame China.

private bank fed reserve prints dollars into existence (used to be % amount of gold in vaults but 1970 boomers are cool)

lend this out to banks who can create 90% of that wealth out of thin air and loan it out (or just put it in other banks where they create 90% out of thin air and repeat recursively) A slanted Jenga tower on top of a slanted Jenga tower.

1000 companies do this to buy junk from China.

China number 1 bank buys import dollars from china companies and converts to Yuan manipulating their currency to keep it artificially low.

China takes dollars and buys US debt creating more deficit spending and also ensuring their currency is weak and exports are competitive.

China looks like blade runner city irl and US circles drain until war

Now wait until people wake up and realize that the US treasury has been and still is bailing out the federal reserve that has called their losses "deferred assets"

stlouisfed.org/on-the-economy/2023/nov/fed-remittances-treasury-explaining-deferred-asset

youtube.com/watch?v=qlow3WcF_jI&t=35s

Because President For Life Trump can't make money from it.

If you haven't started buying precious metals, you should get on that.

No one can tread on that level of swag. He just violated the NAP with those gyrations.

why does it matter that a country sells more in my country than it allows us to sell in theirs.

Let's do the stupid apple thing.
There are 2 apple farms.
My apple farm sells my apples and lets the other apple farm have its own stall and sell as much as they can.
The other apple farm sells their own apples but only allows me to sell 3 apples.
The other farm now has complete control of its own market, has free range sale in my market, and limits my sales in its own market.
Then when I say the other apple farm can only sell as many apples in my market as I am allowed to sell in their market they throw a shit fit and burn all the apples.
It's been hilarious.

If America has critical manufacturing, there's no way to cut it out of the global economy

I don't think it's coming back. The Jews spent the last 40 years offshoring everything to China and handing them our technology, so it's a foregone conclusion that they've been planning for America's collapse. Just like Great Britain was a vehicle to establish a global banking system, we were a vehicle to establish a secure and inextricable global trade network.

And the Jews? Once Ukraine is emptied of slavs and Iran is toast, Greater Isreal and Jew-repopulated Ukraine will be *the* nexus of Eurasia and Africa. All intercontinental and sea-faring trade will pass through that region of land. It will be the center of our universe.

Not everyone on Anon Babble is a drumpftard who loves his plan to milk the world of money so he can give more aid to Israel

makes you dependant on other countries

It limits competition from your market in other countries.
Trump leveling the playing field and making trade fair has made a bunch of people mad because they know they can't compete or just want the easy ride to continue.

Then when I say the other apple farm can only sell as many apples in my market as I am allowed to sell in their market they throw a shit fit and burn all the apples.

China's shitfits are amsuing because they're as scummy and underhanded as we can be. The only difference is that they don't have force projection, so they have to focus on bribing, buying, and undercutting their way into other countries. Then again, it's hard to blame them when all it takes is a few crumbs of pussy to subvert a western politician. Western nations are full of traitorous boomer sellouts.

Basically China was benefitting from its own market while limiting competition from foreign markets which bolstered its market and made it easy to outcompete other markets in other countries where the limits were less than the limits it imposed on them.
It's not just the US getting fucked by China, it's every market they are allowed to infiltrate.

Yes, subsidizing oligarchs is where the vast % of the debt is from.

Subsidizing trade to make sure Americans can afford plastic garbage is a tiny tiny fraction of that.
American people buying things is not the cause of the debt.

can't believe drumpf believes in American exceptionalism

thinks the USD and military is invincible

He could just do that by paying for it with government funds. He doesn’t need to do this dumb dance

The federal reserve still prints money and gives it to jews regardless

China would greatly benefit from American immigration.

They can have all our jeets and nogs. Canada's too.

Biden and the democrat's strategy was literally just that, subsidize industries so they come here. None of the promised infrastructure happened, it was all pork. Trillions.
Our government is so corrupt that negative incentives/power are the only language they understand.

Bro, people under 30 have a 20% unemployment rate. Do you realize how fucked we are? Let me guess your solution is more immigrants.

the US has a rich and diverse export market, the second largest in the world. the idea that America doesn't have manufacturing jobs has always been nonsense

We don't have enough relative to our surplus of low-skill labor.
Mass illegal immigration was rubber stamped by our elites to suppres wages by flooding the labor market. Success, thid was made worse by offshoring substantial portions of our industry which often left only "finishing work" on products to be done here.

It doesn't matter for the global reserve currency if you're playing it safe, but if you lose that status, it matters

The US would not face a balance of payments crisis, because imports are purchased in the US's own currency

Mare sex