Read the story here. Advertise at Before It's News here.
Profile image
By CMI Gold & Silver
Contributor profile | More stories
Story Views
Last hour:
Last 24 hours:

Trade deficit in the news again

% of readers think this story is Fact. Add your two cents.

After not being significantly large enough to make headlines for years, the US trade deficit is back in the news after ballooning 40% to $51 billion in  March.  $37.8 billion of the deficit was with China.  The CBO projects a record high $486 billion trade deficit for fiscal 2015.

Immediately, defenders of the current US economic and fiscal policies laid the blame for the increase on a short West Coast ports strike and bad weather in the East.  Regardless, this data, when GDP for the 1st quarter is recalculated, will result in negative growth, not the weak 0.2 percent increase recently released.

This news further compounds the FOMC’s dilemma as to when raise (or to start talking about raising) interest rates.  Some economists say the Fed will raise in September while other others say it will be put off until 2016.

With the Dow Industrials’ failure to punch new highs, stock investors are looking for signs of when the FOMC will move.  Expectations of what the Fed and other major central banks will do are driving stock markets, not projected earnings or forecasts for economic improvements.  At the Wall Street casino known as NASDAQ, gamblers are betting on continued loose policies, but not yet on the more important Industrials average.

Meanwhile, China has created another problem for the US.

China is petitioning the IMF to indorse its currency, the renminbi, as a reserve currency, which would give it greater acceptance as a “stand alone” currency around the world.  Inclusion of the renminbi as a Special Drawings Right (SDR) currency would diminish the value of the dollar (and the other currencies) that make up SDRs.  This would not be a death keel for the dollar but at least another nail in its coffin.

Any serious analyses of fiscal policies since 2008 show that the inclusion of gold in SDRs would be a more appropriate move, but that’s not going to happen.  At this time, though, individuals can still buy gold (and silver) and should do so while prices are near three-year lows.


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Order by Phone at 888-809-8385 or online at M - F 9am to 5pm EST

Order by Phone at 888-809-8385 or online at M - F 9am to 5pm EST

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Immusist Beverage Concentrate - Proprietary blend, formulated to reduce inflammation while hydrating and oxygenating the cells.

Report abuse


    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    Load more ...




    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.