U.S. [trade] deficit at $66-billion, shatters high

The Globe and Mail: U.S. deficit at $66-billion, shatters high

Youch. Our total trade deficit for last month was 66 billion dollars. That’s 66 billion that left our country for other countries.

Most of this was caused by massive oil importing, after the two hurricanes. But a large chunk (20.1 billion) was still China, who imports energy, like we do.

Our trade imbalance with China will improve, as they begin to float their currency on the open market. Can’t happen fast enough for me. It will increase prices here in the US, but at least the market will be controlling that.

I do think a tariff, while a nice gut reaction, will be more destructive in the end. I’d rather use it as a big stick, and say: “increase the market variance on your currency, or you get this”.

What it comes down to for me, is that the actual wealth of a country comes from what it produces. As we convert ourselves into a service based economy, we’ll not be able to maintain the high standard of living we’re used to.