Re:U.S. Goods Trade Deficit Declines to Smallest in Three Years
by Retric on Tuesday December 31, 2019 @09:34PM
(#21926282)
> otherwise stuff is being given away for free, which we assume probably doesn't happen
It sort of does, in that we export USD. Using USD outside the US requires holding USD. Inflation means you need a continuing flow of USD to maintain that balance. Thus, on net the US is actually selling USD for goods.
“Federal Reserve data from 2017 showed that the number of $100 bills exceeded the number of $1 bills. However, a 2018 research paper by the Federal Reserve Bank of Chicago estimated that 80 percent of $100 bills were in other countries.“ https://en.wikipedia.org/wiki/United_States_one_hundred-doll...
This is countered by people in the US holding foreign currency, but the US is very much exporting currency on net.
It sort of does, in that we export USD. Using USD outside the US requires holding USD. Inflation means you need a continuing flow of USD to maintain that balance. Thus, on net the US is actually selling USD for goods.
“Federal Reserve data from 2017 showed that the number of $100 bills exceeded the number of $1 bills. However, a 2018 research paper by the Federal Reserve Bank of Chicago estimated that 80 percent of $100 bills were in other countries.“ https://en.wikipedia.org/wiki/United_States_one_hundred-doll...
This is countered by people in the US holding foreign currency, but the US is very much exporting currency on net.