Why is the United States not afraid of the annual trade deficit? 1. Large economies
The GDP data of 202 1 in the United States is about 23 trillion US dollars. What is this concept? It accounts for more than 1/4 of the world GDP. The advantage of a big economy is that it can cope with all kinds of shocks calmly. The trade deficit of 202 1 in the United States is as high as $860 billion, but compared with the economic volume, this figure is simply negligible. The United States need not worry at all because of the economic impact of the trade deficit.
2. The dollar firmly occupies the leading position of the world currency, and paper money and national debt can be printed at will.
What does the trade deficit mean? Capital flows from home to other countries. But the last thing America needs is dollar bills. Because international trade is settled in dollars. Moreover, the US dollar is printed by itself, so as soon as the printing machine is started, there is as much money as there is. Most importantly, the dollar has always dominated the world currency. All countries in the world trade in dollars. Then every country must reserve dollars. Therefore, even if the United States prints hundreds of billions of dollars every year, it will not lead to the depreciation of the dollar.
America is not afraid of debt at all.
The debt owed by the United States is as high as $28 trillion, which is higher than its GDP data and the only one in the world. The annual trade deficit is made up by issuing some government bonds at will. Some people may ask, why doesn't the United States panic at all because of high debt? Because there's no need to panic. Dollars are used all over the world, and American debt can also be directly used to settle trade. As long as there is a successor, the United States does not have to worry about the debt problem. It's just "robbing Peter to pay Paul", issuing new American debts and paying back the old ones. So, don't say you owe 28 trillion, even 38 trillion or 48 trillion. For the United States, it is just a number.
The trade gap between China and the United States shows that the consumption power of the United States is huge, and the trade between China and the United States and between the two countries is surplus. On the surface, it seems that we are better at doing business and making money. But we have a population of1400 million, while the United States has only 400 million, which also reflects that the purchasing power of the United States is much stronger than ours. The fundamental reason is that the American people are relatively rich. Our country has always given people a strong feeling in recent years, and its voice in the international arena is growing. However, we must also be soberly aware that although it is strong, the gap with the United States is still not small. It will take many years for the RMB to compete with the US dollar.