> You have a trade deficit, because you're spending more than you can afford
Nope. A trade deficit is when your trading partner buys more of your goods than you of theirs.
> to a degree that you crashed the global economy.
If you're talking about the Great Recession of 2007-2009, then, nope, you're wrong again:
"The causes of the Great Recession include a combination of vulnerabilities that developed in the financial system, along with a series of triggering events that began with the bursting of the United States housing bubble in 2005–2012."
That is literally an example of household debt and irresponsible fiscal behavior.
The trade deficit is based on many things. But ultimately the asymmetric purchasing power of one side leads to a higher deficit. If that purchasing power is drastically increased via irresponsible debt, you are creating an imbalance.
Nope. A trade deficit is when your trading partner buys more of your goods than you of theirs.
> to a degree that you crashed the global economy.
If you're talking about the Great Recession of 2007-2009, then, nope, you're wrong again:
"The causes of the Great Recession include a combination of vulnerabilities that developed in the financial system, along with a series of triggering events that began with the bursting of the United States housing bubble in 2005–2012."
https://en.wikipedia.org/wiki/Great_Recession