[Will88]

Our trading partners can either use the dollars they get from us to buy our goods and services, or they can invest in our economy.

Lol, or buy US treasuries to help the US finance, through debt, what it can't finance through domestic production and government receipts.

[SeekAndFind]

RE: Lol, or buy US treasuries to help the US finance, through debt, what it can’t finance through domestic production and government receipt.

The problem then is TOO MUCH SPENDING. the government spends too much, exceeding the value of our domestic production.

[Mase]

....or buy US treasuries to help the US finance, through debt, what it can't finance through domestic production and government receipts.

Yeah, ok, they can buy government issued debt. If they don't then they have to invest it somewhere else. I can't convince the federal government to live within its means and not pay people to be unproductive, however, the idea that a current account deficit is inherently bad is nonsense ginned up by economic illiterates.