Friday, July 10, 2009

May trade deficit unexpectedly drops to $26B

The trade deficit has been cut in half since 2008, but we are poorer as a nation. (Household net worth down by $13 trillion!)

This is what our leaders want??

There are only two way to gain comparative advantage and become an export-driven economy: lower the standard of living of Americans, via policy, so that we have a labor cost advantage that allows us to sell goods to the foreign sector cheaper than foreigners can sell goods to us.


Weaken our currency to gain a foreign exchange advantage.

Our leaders and policy makers are doing both! Enjoy the shrinking trade deficit, folks!! You have Jim Rogers, Ron Paul, Peter Schiff and many others among those whom you might want to, ehem...thank.

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