“As you know, the United States has been a net debtor to the world each year since 1976, I believe. We've put a huge amount of dollars out into the world and those dollars have to be recycled in some way.”
The U.S. runs a persistent trade deficit, exporting dollars that must be reinvested globally, creating a recycling cycle of capital.
In simple terms: U.S. is a net debtor, sending dollars abroad to be reused.
Understand the global impact of fiscal deficits.
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Deficits can lead to dependency on foreign investment.
