Download or read book Financing the U.S. Trade Deficit written by James K. Jackson and published by DIANE Publishing. This book was released on 2010-11 with total page 19 pages. Available in PDF, EPUB and Kindle. Book excerpt: The U.S. merchandise trade deficit is a part of the overall U.S. balance of payments (BoP), a summary statement of all economic transactions between the residents of the U.S. and the rest of the world, during a given period of time. Some Members of Congress and others are concerned over the magnitude of the U.S. merchandise trade deficit and the associated increase in U.S. dollar-denominated assets owned by foreigners. This report provides an overview of the U.S. BoP, an explanation of the broader role of capital flows in the U.S. economy, an explanation of how the country finances its trade deficit or a trade surplus, and the implications for Congress and the country of the large inflows of capital from abroad. Charts and tables.