Current Events — HabitableZone

Current Events » in reply to re: The falling greenback

Your scope is funky

Trade deficit includes all (trade) interactions with all entities. If you extend your analogy to include all flows of cash that your household engages in, and it still shows a deficit, then you are headed for bankruptcy.

It is a little different for the US that can control its currency to an extent that a household cannot. Otherwise the analogy is pretty sound.

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