A Troubling Sentence

From the Grey Lady:

The United States trade deficit surged in January to the widest imbalance in more than three years after imports grew faster than exports.

This is not a good sign. The US economy is predicated on false demand, by which I mean that the US, and the citizens thereof, buy a . . . → Read More: A Troubling Sentence

John Williams: Can Domestic Natural Gas Cut the Deficit?

The prospect of significant U.S. natural gas production may not be powerful enough to overcome the hot air coming from government quarters, but ShadowStats Editor John Williams identifies it as one bright spot in his otherwise dark outlook for the U.S. economy. As Williams tells The Energy Report in this exclusive interview, increased . . . → Read More: John Williams: Can Domestic Natural Gas Cut the Deficit?

On Free Trade

Vox has recently leveled his formidable intellectual barrels at free trade (see here, here, and here). The conclusion that he has reached has been that free trade has had negative effects on the American economy for the past several years, and that the Ricardian theory upon which the defense of free trade rests is . . . → Read More: On Free Trade

Renminbi Appreciation

Barry Eichengreen wrote a thorough defence of China’s exchange rate policy response to the global demands for letting the Renminbi appreciate and thus stimulate the reduction of US trade deficit.

US Treasury Department recently launched a series of initiatives which labeled China as a currency manipulator and a true source of America’s widening trade . . . → Read More: Renminbi Appreciation

U.S. Trade Deficit Down; Exports Up

A lower value of the dollar has continued to improve the competitiveness of U.S. exports. That undoubtedly accentuated the decline in October’s trade deficit to $32.9B. The declined followed a September deficit of $35.7, which was revised even lower than initial estimates given last month.

In more good news, exports jumped. It was their . . . → Read More: U.S. Trade Deficit Down; Exports Up

U.S. Financial Crisis: Why China Has Much to Fear

Evelyn Black wrote a great blog on September 26 explaining the financial inter-connectedness of the U.S. and China. To sum it up, she says that the U.S. imports more from China than it exports to China. This difference, the trade deficit, is made up by the Chinese government’s investment in U.S. government debt. In . . . → Read More: U.S. Financial Crisis: Why China Has Much to Fear

Fannie Mae, Freddie Mac Bailout: We Are Now at the Mercy of the Chinese

If you watch the news at all these days (and a case could definitely be made for avoiding this habit), then you already know that the United States imports way more cheap stuff from China than it sends over there for sale to the Chinese people. That big difference between the huge amount we . . . → Read More: Fannie Mae, Freddie Mac Bailout: We Are Now at the Mercy of the Chinese