ZeroHedge: US Trade Deficit Crashes To Smallest Since Trump Elected

https://www.zerohedge.com/economics/us-trade-deficit-crashes-smallest-trump-elected

The answer to the question, Is Trump winning again?” is yes.

Remember that trade deficits measure the amount of money that flows out of the country. There simply is no possible way to improve a nation’s wealth by exporting its currency. This would be obvious if money were made of gold, as it once was, but the effect is the same no matter what money is made of.

11 thoughts on “ZeroHedge: US Trade Deficit Crashes To Smallest Since Trump Elected

  1. Good sign. However, Mr. Durden left out something:
    ” While a narrower deficit would let Trump claim his trade policies are bearing fruit, the battle has cast a pall over U.S. manufacturing and caused business investment to slide as companies wrestle with uncertainty.” (Straight from BLOOMBERG).

    The manufacturing side of the house is still wrestling with uncertainty. No sign if that uncertainty will continue, but it is key to the overall economy.

    Also, we have been a net exporter of petroleum for several years. Just getting better means little. Kind of like Trump riding the growth STARTED under Obama, things were already looking up. They just continued the trend.

    Liked by 2 people

    1. Concerning your three points:

      a. Compared to the certainty of sending U.S. dollars overseas, the uncertainty in U.S. manufacturing is preferable. Besides, it is temporary.

      b. Being a net exporter of petroleum means that we are a net importer of other countries’ money in the petroleum market. That’s probably good for us, so so what?

      c. The idea that Trump’s economy is actually Obama’s economy is really dumb, yet some people keep repeating it. To believe it one has to pretend that the current administration didn’t enact any significant economic policies.

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      1. a. Only time will tell. I hope it does come to pass.

        b. I didn’t say it was bad. I only pointed out that it is not new and has been on the rise since the fracking industry, as filthy as it has, has come to be.

        c. To ignore history is the greatest mistake of Trump supporters. The upward trend started under Obama’s watch. It may pain you to realize it, but the economy did not all of a sudden turn around on January 20, 2017. Trump has been riding the wave for the most part. You’re afraid to admit the fact. That’s fine. Smart people now the facts and don’t try to alter them.

        Liked by 2 people

        1. RE: “Trump has been riding the wave for the most part.”

          Yup. That’s the dumb part. As I said, to believe it one has to pretend that the current administration didn’t enact any significant economic policies.

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          1. The only “significant” policy Trump has forwarded is the tax “reform” bill, that will eventually affect you negatively. You are too short sighted to see the long term effects. In 6 years, when the “middle class” portion of the reform bill expires, you should prepare for a much larger tax burden to dig us out of the massive deficits that are continuing to climb in this country. In an LTE this morning, someone asked who is going to pay for the potential war with Iran. Easy. Trump will do what W. did and put it on a credit card. That bill is going to come due and it will fall on simple folks like you and I to pay it.

            Liked by 1 person

          2. @Roberts
            The feckless tax cutting for the mega-rich is indeed a very significant economic policy. The huge deficits it has created are a classic form of Keynesian economic stimulus and will have helped keep the economy growing, albeit slowly since it was near full employment when it started. This is classic GOP economic borrow and spend economics which time and again the Democrats have had to try to clean up when they returned to power.

            It is often noted the level of hypocrisy among Trump supporters. Just like their abandonment of “family values” for Trump, they have also abandoned the principle of fiscal discipline (which they never actually follow).

            Liked by 1 person

  2. @Roberts

    This is too funny. Trade deficits after three years of Trump’s “winning” have been restored to the level that we experienced in Obama’s last year in office. And THAT is an example of “winning!” LOL!

    Liked by 3 people

    1. RE: “And THAT is an example of ‘winning!'”

      I’d say so since, as stated, reducing trade deficits is inherently a good thing.

      But if kissing Obama’s ass is necessary to communicate economics to foolish people, I could put it this way: Reducing trade deficits to the level we experienced in Obama’s last year in office as Trump has done is inherently a good thing — a win — for Trump. Doing nothing about them most likely would have been a bad thing. And that’s true even without suggesting that high trade deficits might have been Obama’s fault to begin with.

      Like

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