Reply #1: when greenspan said market forces would lower the trade deficit, he meant:

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the dollar will continue to slide so that imports are more expensive (effectively inflation) and exports (uh, what exports?) are cheaper. this means that those cheap little toys and clothes made in asia will start to become pricey, and those great foreign cars will become really expensive. plus whatever wealth you have will start to erode, unless you invest it all overseas.

he's right, of course, but this is not a great picture for americans. it amounts to yet another invisible tax hike on america, just as the budget deficit imposes an invisible tax hike on future generations who must pay the interest and eventually the principal.