Questions that are rarely asked (from the comments)

Here is Michael Dennis:

The fact that the US is running a persistent trade deficit and experiencing significant net capital inflows seems like very strong evidence that we are not in a traditional Keynesian situation, where we have ‘excess saving.’

If we have excess saving, why are we having a capital inflow rather than a capital outflow?

If combined private and public demand were below the economy’s productive capacity, why are we running a trade deficit? Doesn’t the existence of a persistent trade deficit indicate that our demand is in excess of our supply?

Very much not our grandma’s recession.