With a new round of $1,400 stimulus checks pouring in and the economy continuing to recover, the US trade deficit surged to a record $74.4 billion in March, the Commerce Department reported on Tuesday.
RT’s Keiser Report looks into why this trend is likely to continue since the global manufacturing base has long since moved to China.
According to Stacy Herbert, the reality is that America relies on Chinese goods and services.
“We have a lot of printed money, a lot of stimulus checks, a lot of Biden-bucks, but the fact is you need someone to send you goods for that,” she points out.
Max Keiser adds: “The United States is a consumer economy, it’s not a manufacturing economy. So if you send everybody a check, they’re going to consume with it. And that means they are going down to Walmart and consume. And that means the money goes to China.”
For more stories on economy & finance visit RT’s business section