How trade deficits are making the U.S. poorer, while in the past they have made the U.S. wealthier.

Topics covered include:

• Two ways countries can increase their competitiveness
• How savings always equals investment
• Why excess savings flows to the U.S. leading to a drop in U.S. domestic savings
• Why the U.S. current trade situation could lead to a debt crisis

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Show Notes

Why U.S. Debt Must Continue to Rise by Michael Pettis—Carnegie Endowment

Could Trump devalue the dollar with a "Mar-a-Lago Accord"? by Paul Diggle and Luke Bartholomew—Aberdeen Investments

A User’s Guide to Restructuring the Global Trading System by Stephen Miran—Hudson Bay Capital

Is Peter Navarro Wrong on Trade? by Michael Pettis—Carnegie Endowment

Related Episodes

515: Tariffs and the Mar-a-Lago Accord: What Trump Really Wants

470: How the Economy Really Works: Savings, Investing, Consuming and Market Distortions

144: Trade Deficits Aren’t Always Bad. Trade Wars Are.

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