In general most economist agree that deficit is not a negative thing, but I have trouble understanding why
For example if country A has 10\$ and country A runs trade deficit to B of 2\$ per year, doesn't this necessary mean that in 5 year country A can no long buy product from other country?
I think I am missing something important here. How can a country run trade deficit multiple years without eventually going bankrupt?
One reason that I have been given is that since country A buys country B's product in country A's currency, country B must use that currency in country A, thus the trade is balance in the long run, is that true?