Business & Technology Economic

Mmmmm, taste that bitter deficit

<![CDATA[ US Trade gap hits new high at $68.9bn

The US trade gap reached a new all-time record of $68.9bn in October as surging deficits between the world’s largest economy and its top exporters overshadowed the effect of declining energy prices.

The US commerce department said on Wednesday that the overall deficit expanded by 4.4 per cent in October after it had risen by 11.9 in the prior month.

Meanwhile imports of goods and services advanced by 2.7 per cent to a record of $176.4bn as exports rose by 1.7 per cent to $107.5bn, the second-highest reading.

Just another way we’re borrowing against the future. We can also see the declining value of American education, since the majority of added value in industrial products comes from human intelligence. The United States desperately needs to focus on creating human capital to counter the physical capital of emerging economies.

On a related note, though, I am glad that I bought Boeing at 33; it hit an
all-time high today. Planes, one of the ultimate knowledge value-added products, are selling like hot cakes.

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2 replies on “Mmmmm, taste that bitter deficit”

Yes, planes are selling better overseas. That’s bad for the U.S. airline industry, which is slowly being crushed in the long haul market.
The deficit, however, isn’t benefiting much, because we’re buying so much other stuff that it would take 10 to 15 Boeings to make up just part of the difference.