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Even Trump and all his deal making can't change that. Yet he is threatening a trade war because of deficits that reflect America's own saving-investment imbalance.A country runs a current-account deficit if investment exceeds national saving, and runs a surplus when investment is less than national saving. Suppose, conversely, that the U.S. imposes new import barriers in response to its current-account deficit.There is no particular reason why a reduction of foreign trade barriers or an increase in U.S. trade barriers would have any first-order effects on the U.S. saving and investment rates, and therefore on the U.S. current-account balance. To reduce its current-account deficit, the U.S. must either save more or invest less in its economy.It's not hard to see why the U.S. runs chronic current-account deficits. The U.S. national saving rate – the sum of private saving plus government saving, measured as a share of GNI – has declined markedly during the past 30 years.
Europe must oppose Trump
Crisis of Anglo-American democracy
U.S. sanctions and international law
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