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Trivia Tidbit of the Day: Part 632 -- Trade Deficit Down, Because Trade Down.
Texas Still #1 Exporting State, 7 Years Running-
The trade deficit is down, but all trade is down. Exports, included:
The Washington Times opines:
If the U.S. trade deficit were to disappear, do you think that would be a good or bad thing? For years, many in the media and the political world wailed about the U.S. trade deficit, but it is rapidly disappearing -- and the consequences are going to be disastrous.
Anti-trade forces in each party, mostly on the left, are doing a terrible disservice to civilization. What is Ron Kirk doing to fix this, other than pandering to unions?
Previous Trivia Tidbit: Obama Jumped The Shark.
Posted by Will Franklin · 28 July 2009 11:38 AM
A lot of this is going to be due to the weakening of the dollar. Foreign goods become more and more expensive and our exports become cheaper. The dollar should be far weaker than it is, but China has been manipulating their own currency and buying dollars to prop up US demand for their products. The natural order of things is for currency values to reflect trade imbalances but for a variety of reasons, they do not.
That will change however with our massive deficit spending and Obama's discovery of the printing press. A weak dollar is good news for US exporters, but is bad news for consumers. Add protectionist Democrat tarriffs and the problems it causes with our trading partners and we may get a quadruple wammy--increased costs because of a weak dollar, increased costs because of tarriffs on foreign goods, increased costs because of Global Warming surtaxes, and decreased exports because of foreign retaliation due to our Protectionist trade practices.
Obama's team needs to decide what side of their mouth they want to talk out of on trade because naive is a compliment. The alternative to ignorance or naivety is to assume they know exactly what they are going to do to the American consumer and that it is part of a Liberal agenda to prevent us from consuming at rates that they consistently call "unsustainable" or greedy or irresponsible or unfair as they appologize to the world for America's unfair position at the top of the food chain.
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