President Trump is falling woefully short on his promise to fix the trade deficit. It's on track to hit $570 billion this year — up from $505 billion in 2016.
Critics blame the trade gap for lost manufacturing jobs, and apologists assert it permits Americans to consume more and cheaper products without much harm.
Both arguments have some merit but such a yawning trade gap must be financed. Foreign governments and private persons buy U.S. Treasuries, corporate stocks and bonds, and real estate in tony locations like Manhattan and Miami Beach, and we have to pay interest, dividends and rent on those assets that grow larger each year.
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