Be sure to check out that post I linked to and the various links there. Murphy admits that It could be possible [to have a healthy economy with a huge trade deficit], but that’s not what’s happening in our economy, and that Schiff was warning about it, and I [Murphy] wasn’t looking at the big picture.
I’ve never heard Schiff assert anything along the lines of “goods are objectively better than services.” All the argument’s I’ve heard him make in that area are focused on the present US situation.