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| Your last paragraph is simply not a true statement. A government can have a fiscally balanced budget, thereby adding nothing to the national debt, while the nation runs a trade deficit. The US has done as recently as the 90's.
Now if we want to live in the fairytale of low taxes, high welfare / gov spending, high military, high trade imbalance - then we have to run fiscal deficits.
Of the things I listed, trade imbalance would have the least correlation to national debt because it can be funded through private borrowings and foreign investment, or even tax revenue surplus. | |
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Your farm has a trade deficit
