Trade Deficit Widens to $67.1 Billion, a 14-Year High (wars)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Remember when Trump promised to "mAkE AmUrica gR8 aGaIn" by winning on trade? What a farce that was. Instead losses on trade have never been greater- and don't blame Covid, because the whole world is dealing with Covid.
This is interesting in that the trade deficit with China has narrowed but the gross is record setting, I assume people are switching to other countries since the deficit with Mexico is also record setting. It appears people want low cost products and will import from other countries regardless.
I believe our exports are up though, are they not? I know that several years ago the US barely exported $100 billion in goods to China, while we imported anywhere from $450-$700 BILLION from China. The rest of the deficit was cumulative of about that much again, around 10% deficit with each of the other countries we trade with. Trade will, of course, ebb and flow like the tide as our dollar goes up and down. A strong dollar encourages imports, while a weak one encourages exports.
Lastly, Covid-19 has everything messed up and so much shut down, I'm surprised it's not worse.
Robert Triffin believed the dollar could not survive as the world's reserve currency without requiring the United States to run ever-growing deficits.
Me neither.
In fact one reason why the global economy was getting pounded by my estimation was that the US was not importing oil after the fracking boom. It directly destroyed Venezuela but also sapped dollar out flows.
Well if that is true why the concern on our trade deficits with China and Mexico.
Our biggest problem are lots of people who don't know what the problem is, you among them.
People were whining about China maybe repatriating a trillion dollars. Go ahead. In 2006 the US created 2 trillion in mortgage money.
Or people who think they know what the problem is but demonstrate extreme ignorance, like yourself.
As long as the US keeps borrowing money to provide you with welfare rather than focusing on economic growth, we're going to be holding ourselves back. But keep enjoying your welfare.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
