An article Tuesday in The Economic Collapse Blog discusses the U.S. ‘Balance of Trade’.  See ‘The Worst In The World – The U.S. Balance of Trade Is Mind-Blowingly Bad’ – reading time 5 minutes.  While I think this article makes a number of sensible points, I think it is written from too low an altitude.  For me, the real issue is the build-up of the U.S. Cumulative Net Trade Deficit, and even more importantly the timing and monthly ongoing inexorable increase of that build-up.  That said, you might read this article to get an American’s perspective on what I think is one of the most telling of the regularly released U.S. economic statistics.  After I read the referenced article, I added the following comment to it.

“I have written about the significance of the U.S. net trade deficits since at least 2008. I have always considered this to be one of the most important indicators of U.S. economic direction. Of particular significance, or so I think, is that the U.S. cumulative net trade deficit began to grow within two years of President Nixon’s 1971 ‘release of the gold price from a fixed U.S.$35 per ounce’. If you review the history of the U.S. accumulation of net trade deficits, you will find that number grew from U.S.$0 in 1972 to U.S.$2 tillion in 1999 (27 years), and only 12 short years later is now about U.S.$8 trillion. This trend tracks U.S. manufacturing job losses. On November 9 I updated my commentaries on the U.S. net trade deficits. If you are interested in following up, you can find my November 9 commentary at http://goo.gl/BpQ8r”.

Visit Stock Research Portal for stock market data, analysis, and research on over 1,600 Mining, Oil and Gas Companies listed on the Toronto and Venture Exchanges. See our Legal Disclaimer.

Possibly Related Posts:

• Greek Eurozone Exit Consequences?
• Q1 2012 Europe and Eurozone GDP!
• An Accident Waiting to Happen, or ‘Ever Closer To The Cliff’!
• After Spain, is Italy Next?
• Spain and Spanish Bank Dilemma!

Trackback URI | Comments RSS