If we buy less Chinese stuff, then China has less dollars to buy Gov bonds, which means Gov has less money and has to spends less and decrease in size.
Umm...not exactly.
Foreign purchases of Treasuries by China, or lack of purchases, has NO effect on what Uncle Sam spends. Take a look at the publicly available numbers and be convinced.
This is an issue no one wants to grapple with - reigning in deficit spending!
Tariffs are all well and good. But until most of those products are manufactured and distributed here in the USA, massive government deficits (at all levels) will be a major contributor to the trade deficits.
“Umm...not exactly.”
Umm...yes exactly.
“Foreign purchases of Treasuries by China, or lack of purchases, has NO effect on what Uncle Sam spends. Take a look at the publicly available numbers and be convinced.”
You’re looking at numbers from the Obama administration, an aberration from the norm.
Now that budgeting is back, revenue plays a yuge factor.