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.