The US has had a trade deficit since 1975, so is the US trade deficit really such a bad thing?
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It is not a bad thing because the US is a debt based economy. On the books, debt counts as money. So, if we default on the debt, it will erase the value of all the money. However, we used that debt to obtain physical goods, so if we do default we still keep the goods since we have the greatest military in the world to defend those goods.
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