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  • trade deficit

    It’s Not the Value of the Chinese Currency: The Proof in Charts

    While the U.S. Treasury did not label China as a currency manipulator this week, it did criticize the Chinese authorities for recently intervening in the foreign exchange market. However, the yuan–dollar exchange value has no effect on the U.S.–Chinese bilateral trade balance. This is because a lot has changed in … More

    U.S. Trade Deficit: Made in Washington, D.C.?

    The Treasury Department recently reported that China and Japan are the largest foreign holders of U.S. government debt. China now owns $1.317 trillion in U.S. government debt. Japan owns another $1.186 trillion. It is no surprise that China and Japan are also the two countries with which the United States … More

    Imports: Let’s Hear More Economic Sense Like This from the President

    As President Obama heads to Chattanooga, Tennessee, today to give a speech at an Amazon.com fulfillment facility, he finally seems to be coming around on the positive effects that imports have on the economy. For a long time, the President failed to acknowledge that both exports and imports create jobs … More

    Good News: Reporters Link Bigger Trade Deficit to Stronger Economy

    The government just announced that the trade deficit for May increased by $400 million. Usually, the media report announcements of bigger trade deficits as bad news, accompanied by mistaken assertions that trade deficits are a drag on the economy. But this time, some reporters got it right. According to Reuters: … More

    Don’t Be Fooled - Trade Deficits Are Just Fine

    There is a major misconception in the United States concerning the balance of trade and jobs. Many equate trade deficits and increases in imports as bad for employment. They could not be more wrong. In fact, higher imports are a signal of prosperity and plentiful jobs. When a country’s economy … More

    Does the United States Really Have a Trade Deficit?

    In 2012, $3.4 trillion came into the United States through trade and investment, and $3.4 trillion left, according to the Bureau of Economic Analysis (BEA). Every dollar Americans sent to people in other countries was balanced by a dollar sent back to the United States: 64 cents for U.S. exports, … More

    Korea-U.S. Free Trade Agreement One Year On: Solidifying a Partnership for the Future

    March 15 marks the first anniversary of the Korea–U.S. Free Trade Agreement (KORUS FTA). Over the past 12 months, a growing number of businesses in both countries have taken action to capitalize on the expanded opportunities created by the free flow of products, services, and ideas through the KORUS FTA. … More

    One of America’s Biggest Exports: Treasury Securities

    The Bureau of Economic Analysis (BEA) recently released statistics on U.S. exports for January, but failed to mention of one of the biggest U.S. “exports”—federal Treasury securities. In 2012, the government financed its deficit spending by selling $382 billion in Treasury securities to foreign buyers. To put that in perspective, … More

    Attention, Reporters: A Trade Deficit Is Not Bad

    The latest trade deficit figures are out, and, as always, most reports fail to accurately explain what these numbers mean. Consider the following widely reported statement: A narrower trade gap boosts growth because it means U.S. companies are earning more from overseas sales while U.S. consumers and businesses are spending … More

    U.S.–China Trade: Don’t Let the Numbers Fool You

    The numbers for America’s trade in 2012 came out on Friday and, as usual, China is prominent. America’s goods trade deficit with China broke the $300 billion barrier, rising almost 7 percent from 2011 to $315 billion. Also, China was said to have passed the U.S. as the largest trading … More