Good news today for the U.S. Treasury!
“The total deficit in goods and services rose to $46.3 billion for the month, from $43.2 billion in May, the Commerce Department reported Friday. Imports increased by $1.6 billion, to $260.2 billion, while exports declined by $1.5 billion, to $213.8 billion.”
Yep, no kidding. Despite all that you’re hearing, a widening of our trade deficit is a good thing given the current state of U.S. government affairs.
Remember, we just had a tax cut, while Federal spending is being ramped up big time. Of course that means the treasury — in order to pay the bills — will be issuing new debt like its going out of style. And the rest of the world has an extra $46 billion to buy with. Man will we need it!
Never forget, you and I buy stuff with U.S. dollars, they have to come back. Our current account (trade) deficit is entirely offset by our capital and financial accounts’ surplus.