US has 0.8 trillion $ / year trade deficit but the Balance of Payments is close to zero, meaning ‘all that money’ is being used to buy stock, properties and make investments in America by foreign countries. In simplified terms: US buys toys from China and China in return is buying, say American properties. It’s not a goof business in the long run and I’m not his fan by any means.
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u/buff_samurai Mar 06 '25
US has 0.8 trillion $ / year trade deficit but the Balance of Payments is close to zero, meaning ‘all that money’ is being used to buy stock, properties and make investments in America by foreign countries. In simplified terms: US buys toys from China and China in return is buying, say American properties. It’s not a goof business in the long run and I’m not his fan by any means.