Stop Worrying About the Trade Deficit

Dave Ayers linked Stop Worrying About the Trade Deficit on his blog recently. Like him, I think it is a good explanation of the trade deficit and why it is largely a red herring. The trade deficit is not debt and should not be considered such. The article closes with the following,

Of course, part or all of the trade deficit can become debt. This happens whenever Americans borrow dollars from foreigners. As it happens, the most prodigious borrower today is Uncle Sam. But despite self-righteous accusations leveled at foreigners by the likes of Senators Schumer and Graham, the fact remains that U.S. government indebtedness is not caused by foreigners buying Uncle Sam's bonds, but by Congress spending beyond its means. If government debt is a problem, then Congress should stop borrowing. Complaints about the trade deficit are a red herring.

We Americans have many real problems confronting us. The trade deficit isn't one of them.