Friday, August 3, 2018

The Trade Gap Widened In June, Great News for the U.S. Treasury!

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.

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