Trade Deficit Shrinks! Yea or Boo?

trade deficit

Trade Deficit Shrinks!  Yea or Boo?

It’s true, our trade deficit, the difference between what we sell to foreign countries and what we buy from foreign countries—and we buy far more than we sell—is shrinking.

On the face of it you would think that a good thing.  We’re finally catching up, shrinking the trade deficit.

Unfortunately, even though the administration will crow about it as an economic success of the great giveaway, it’s an economic failure.  It’s not that we’re selling more to China and other countries, it’s that we can afford to buy less…way less.  So, yea, the trade deficit is shrinking because we can afford less and less.

What you’ll hear from Government will be typical of them pissing down your neck and telling you it’s raining.  It’s much like the so-called inflation figures we get.

Government:  “There’s no inflation.”

Fact:  The government doesn’t calculate the cost of food or fuel in the inflation numbers.  Have you gone to the market lately?  Even though the cost of fuel is falling (you don’t think the Arabs want Obama to lose the election do you?) the cost of food, controlled by the cost of lots of factors other than fuel (taxes for instance), continues to rise.  And in fact, it’s predicted that the cost of heating oil will be ten percent higher this year, so the Arabs, as much as they’d like the guy who bows to their king to be re-elected, will still get their pound of American flesh.

If you feel like a mushroom it’s because the Fed continues to keep you in the dark, buried in b.s. The trade deficit numbers are another example of your government looking you straight in the eye and lying through their teeth.

Trade Deficit Shrinks!  Yea or Boo?

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