If all the factors (large fiscal deficit, AI investment boom, clean household balance sheets) were truly pushing up the trade deficit, the dollar should be stronger; since markets are not pricing that, the trade deficit cannot widen unless the dollar rises — the saving-investment imbalance reconciles with a depreciated dollar through inflation and timing rather than being a genuine conundrum.
causalpending
Speaker
Joseph GagnonEvidence Quote
“unless the dollar goes up, I don't think the trade deficit can widen.”
Created: 6/18/2026, 1:57:48 PM
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