No to denigrate your point at all and I don’t deny what you say at all. But don’t you need a trade surplus for this to be effective? Right now our economy is operating at a net loss(correct me if I’m wrong) which is sustained by an influx of foreign capital. What would happen if, say, capital found a better place to go? Could the American economy sustain itself?
Capital is a product no less valid than a tangible product. Is the money you spend to go to a movie less important than the money you spend on an iPod? The fact that the iPod is tangible makes no difference as far as economic flows are concerned.
We attract capital because we are the most efficient, open and honest system in the world. So long as we remain so, we have nothing to worry about. Closing our system, imposing more regulations and barriers, would dry things up in a hurry, and be quite counterproductive to what protectionists claim as their goals.