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Mission Impossible: Tariffs Didn't Reduce the Trade Deficit (Deals Won't Either) - Mish Talk

To fully understand Trump's trade dilemma, consider the following chart.

Trump's Current Account and Trade Deficit Problem in One Picture

Government Saving + Private Saving = Exports - Imports

The identity is not debatable, but it is misunderstood.

Exports and imports are not just about trade. One must factor in capital, thus my annotation about foreign direct investment.

For the government "saving" component, pencil in deficits in excess of $1 trillion dollars for five years.

Projected Deficits vs Projected Increase in Debt...

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