Different Perspective on the Trade Deficit

Concerning trade in general I like to point out that trade is primarily conducted between individuals and firms not between nations as the media always seems to state.  For instance, it is common to hear a report stating that the U.S. has a [insert over the top adjective] trade deficit with China.  A more accurate portrayal would be to say that U.S. consumers and businesses prefer to purchase goods and services from other individuals and firms that happen to be physically located in China more so than comparable offerings from individuals or firms that happen to be located in the U.S. or other countries.

I found another interesting way to illustrate the trade deficit from the blog Cafe Hayek as referenced by Don Boudreaux:

My friend Jack Wenders, Emeritus Professor of Economics at the University of Idaho, notes this passage in a recent AP report:

The U.S. must borrow more than $2 billion per day from foreigners to finance its huge trade deficits.

Jack's reaction to this typical way of framing the so-called 'trade deficit' is noteworthy:

Maybe a better way of putting this would be to say: "Foreigners must sell the U. S. more than $2 billion per day in goods and services to finance their huge purchases of U.S. assets."