The year he was elected (1980), the U.S. was the largest creditor nation in the world. The year he left office (1988), the U.S. was the largest debtor nation in the world...
The specious narrative of the day is that Central Banksters, acting independently, have created all of the malincentives leading to serial asset bubble inflation. However, we know that's not the case, because there is no way that interest rates could fall from 18% to 0% over 30+ years without the prevailing existence of pervasive wage deflation. In Bernankenstein's terms, the wage deflation and resulting low interest rates was a result of a global "savings glut", presumably generated by Third World children working in medieval factories for 50 cents per hour. Why not fully capitalize on such an opportunity by lowering interest rates to 0% ?
"the overall BOP accounts will always balance when all types of payments are included"
A trade deficit such as the one shown in the first chart above implies increased borrowing by an equal amount. The wake up call that the consumption-oriented lifestyle was no longer sustainable first came in the 1970s. Policy-makers' response was to ignore the warning and instead throw open the doors to Third World imports and commence a multi-decade borrowing spree to prop up jobless "consumers" with the resulting cheap debt.
Case closed. Central banksters are indeed billionaire bukkake whores, however, Central banksters acting alone could in no way create this disaster. If the Fed funds rate was on auto-pilot it would have worked itself lower automatically.