In terms of the structural US trade deficit, it's often said that the US exports paper to get real goods. We give the rest of the world dollars, and they give us commodities, consumer goods, etc. 
However, that's not the full picture. The foreign sector then takes those dollars and buys US financial assets (stocks, bonds, real estate), and thus owns a greater and greater share of our productive hard assets.
In other words, what the US is primarily doing, is selling our appreciating financial assets for depreciating consumer assets.
It's not a great trade in the long run.
It's not a great trade in the long run.
US petrodollar hegemony be like:
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