Because of the US reserve status, we can print and buy consumables from other countries They take it and invest as opposed to consume This is the core problem! We consume more than we produce and don’t reinvest a lot If instead, we use the printing privilege to invest in increasing productivity short term trade deficit would not be worrisome Let’s say we import cheap raw materials from China, to rebuild our roads. The added productivity that comes from this project would far exceed the price we paid in trade deficit. But if import cheap finished goods. They will be consumed and gone! No added productivity. The mix of spending has to change and the US consumer is rich and does not save anymore. He just consumes. This is where the risk is.