Capital account = current account. A trade deficit equals debt accumulation. A 35 year trade deficit equals Ponzi borrowing.
"the Balance of our Forraign Trade is The Rule of Our Treasure" (published in 1664)
Mercantilism is the way countries used to bankrupt each other - by running massive trade surpluses. China's leaders understand history, America's leaders understand South Park and Faux News.
There's no *free* lunch:
U.S. Net exports (red), with U.S. real debt (blue):
Trump and Cramer in their wisdom have decided that after 35 years of letting the horses out, that it's time to close the barn door. When corporate profits collapse - already well underway - everyone will be on the same page.
"I'm with Trump on this. Look, we lose on every trade deal. I ask all these people from either party: name me one trade deal we have had a surplus on in the last decade. They can't name any,"
It's the measure of an Idiocracy to be equally over-confident in their capacity to govern, before, during, and after ignoring colossal mistakes.
