I agree with you, but I think your terminology is inexact when you say:

"The money is being absorbed by the wars and the trade deficits."

Wars do not absorb money, they absorb wealth -- money is paid to make a bullet, and after the bullet is shot the money remains to decrease the value of all money, and the bullet is gone.

Trade deficits can move accumulated wealth (or money) around, but they also don't absorb it; a foreign country might absorb money, if they decide to stockpile it.