2025-12-29 17:35:17

America's trade deficit problem? The real culprit isn't trade barriers from other countries—it's foreign capital flowing into the US. Think about it: when investors worldwide see opportunities in American markets, they pump money in. This drives up the dollar, makes US exports pricier abroad, and widens that deficit gap.

Now, if Trump actually manages to shrink the trade deficit, here's what probably happens behind the scenes. He'd need to make the US less attractive to foreign investors. Less foreign capital means the dollar weakens, exports become competitive again, growth slows down. It's a trade-off nobody really wants to talk about.

So the question becomes: cut the deficit, or maintain economic momentum? You can't have both. Policy decisions here ripple across global markets and asset prices.

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tx_or_didn't_happen

· 15h ago

Damn, this logic is the real killer. No one wants to admit that the dollar appreciation killing exports is really a fact.

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RugpullAlertOfficer

· 20h ago

Basically, you can't have both fish and bear paws; reducing the deficit will inevitably sacrifice growth. It's a bit harsh—what's Trump's game plan? Foreign capital withdrawing from the US? Isn't that shooting oneself in the foot? That's the core logic... The dollar's appreciation really can't compete with exports. Cold, hard reality: either reduce the deficit or maintain growth—choose one. So ultimately, someone has to pay the price. I think fiscal policy needs to be adjusted.

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PositionPhobia

· 20h ago

Damn, this logic is the real truth, we've been deceived all along --- Wait... shrinking the deficit costs so much? No wonder no one really wants to do this --- So in the end, it's still the fault of the strong US dollar, who can we blame --- This is awkward, you really can't choose between fish and bear's paw --- Oh my god, investors rushing in has become a problem, this contrast is incredible --- Sounds like a deadlock? Either cut the deficit or hurt growth --- Thinking about it, Trump's promises might really be unachievable... --- Capital inflows lead to depreciation pressure, will the US stock market suffer --- Brilliant, attracting capital has become a problem itself, the worries of the world's largest economy

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GasFeeAssassin

· 20h ago

This logic is roundabout; in plain terms, it's just wanting to have both the fish and the bear's paw at the same time.

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StablecoinEnjoyer

· 20h ago

The real issue isn't the trade war, it's the appreciation of the US dollar... The logic makes sense. Forget it, Trump can't change the fundamental nature of capital flows either. There's something there—it's a trade-off between deficits and growth. That's the key... reducing the deficit means cutting growth. Hey, a dollar depreciation can boost exports, but everyone knows the cost. Ultimately, it's still a matter of capital pricing power.

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