I don’t get it. If I have nothing in the bank, and buy that Foster’s on my credit card, the argument is that I should’ve bought Budweiser on my credit card instead.
Moreover, think about it intuitively: government borrowing in excess should reduce the value of the dollar, which would theoretically increase the attractiveness of US exports to foreigners and decrease the attractiveness of foreign imports to US consumers.
Reducing leverage by itself should increase a trade imbalance.