Prague Twin

Tuesday, June 12, 2007

Trade Defict



My Uncle believes that the media is biased and that if the drop in the trade deficit to "only" $58 billion last month had happened during a Democratic administration it would have been front page news.

I think this chart puts things in perspective. You can just barely see the drop from $61 billion to $58 billion on the far right hand side of the chart. Does that look like front page news to you?

While we are on the economy, I think the smart money is taking some off the table.

Oh, and don't miss this piece. The link will only be good for a couple of days. This helps confirm my suspicion that inflation will continue to be a problem looking forward, rates will not get cut, and the stock market will have to come back to some sort of reality.

This is in direct contrast to my all-knowing reader's contention that rates don't matter, inflation will remain low, and the current levels in the stock market correspond to realistic earnings potential.

Of course, when I'm proven right, my dear reader will contend that he never said that.

UPDATE: Looking at the chart, I want to be clear that the small down turn in at the very right of the chart is not that noticeable slope on the last half inch of the screen, but rather the almost invisible little down turn that represents about a millimeter at the very far right. Literally, you have to squint to see it.

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4 Comments:

  • I think your uncles point wasnt that the news warranted the front page based on its own merrits as "news", but rather that the MSM would have put it on the front page depending upon who was in the White House.

    By Blogger Lysander Cadwalader, at 5:54 PM  

  • And my point is that no matter who was in the White House, this particular drop is so insignificant that it wouldn't make news even if the editor of the NYT was in the White House

    By Blogger Praguetwin, at 9:14 PM  

  • PT,

    "Literally, you have to squint to see it."

    Or click the image and get a clearer picture.

    But, I get what you mean. The more noticeable downward slope is good to see, though. Not good enough, but good.

    After all, it could be climbing in dramatic fashion.

    By Anonymous Anonymous, at 4:04 AM  

  • You can't control a trade deficit when you live in a country seemingly dedicated to making nothing. Cheap imported goods are making us rich in things but poor on the world's stage.

    By Blogger Publia, at 7:47 AM  

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