Tuesday, January 13, 2009

U.S. Trade Gap Narrows to 5-Year Low on Import Slump



According to the debt-doomsday crowd we should all feel a lot better now that the trade deficit has been cut in half. So how come things feel a lot worse?

The trade deficit was never a reflection of the health or vitality of the U.S. economy. Rather, it was a function of economic policy engaged in by U.S. trading partners and the fact that the dollar was held as the world's reserve currency. Both were major factors that drove the trade deficit.

2 comments:

Billy said...

Geithner did not pay his taxes - I do not understand.

I am numb form the "nanny" problems over the last few cycles. I do not understand why these powerful people cannot handle employee paperwork.

I would have liked to hear or see the hearings - I did not have a chance to.

Billy

Mike Norman said...

Too bad Obama didn't choose James Galbraith for Treasury, but that would have been change.