Hacker News new | ask | show | jobs
by anticodon 1748 days ago
USA cannot end the trade deficit. USA is a parasite on the world economy: it prints dollars and buys everything it needs with a pieces of paper (or zeros and ones in some bank computer).

Unlike almost all other countries in the world, where they have to work hard with their hands and brains to get something. USA printed more trillions only in the last year, that China - country that provides all the world, including US, with clothes, electronics and just about everything else - managed to save in the last 20 years.

This position is incredibly profitable for the USA, but it needs the largest military power to maintain status quo, because all the other countries understand they're being ripped off. And this military power immediately kills anyone who renounce use of dollar for trade (see Iraq, Libya).

If USA will end trade deficit somehow, it would mean that it would be on par with other countries, and population of USA would have to reduce its consumption of goods and resources by 15-20x. It will be the end of USA, most probably civil war and collapse.