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U.S. trade deficit widens: the TRUTH, not the B.S.
by Jeff Nielson Bullion Bulls:
The most-recent U.S. trade deficit was announced, and because it was a bad number (as always) the propaganda machine felt itself obligated to make-up silly excuses. What is the silly excuse for the larger-than-expected U.S. trade-deficit number? It’s because of “the strong dollar”.
Many readers will see no joke here, at all. They have often heard the propaganda that “a strong dollar” (or any relatively strong currency) will hurt exports. Here’s the problem, I’ve been following the U.S. economy very closely over, in particular, the last 7 years. And during this time; the U.S. trade deficit has trended LOWER when the U.S. dollar is STRONGER.
Readers who are totally indoctrinated with the mainstream propaganda may find this hard to believe, because in some respects it is counter-intuitive, and contrary to some (but not all) economic fundamentals. But the numbers speak for themselves.
Back in May, the trade deficit briefly spiked, and this was the headline:
U.S. trade deficit largest since 2008 as imports surge
Back in 2008 (and 2007), the exchange rate of the USD dollar was at MULTI-DECADE LOWS. The dollar had never been weaker, but the trade deficit was sky-high, not low. And exactly one month ago, we saw this headline:
US trading deficit falls to US$40.8 billion due to decade-low oil bill
