Posted by: Michael Mandel on October 09
Yes, the headline number on this morning’s trade report improved. But that was misleading. In fact, the non-oil trade deficit widened for the second straight month (19.8 billion in June, 23.6 billion in July, 24.3 billion in August).
That’s not a good thing. It means that the fundamental imbalances in the global economy are reasserting themselves.
What’s worse, our trade deficit in advanced technology products is actually worse than it was a year ago, before the crisis hit. That’s a sign of a fundamental problem in what should be a U.S. strength.
Michael Mandel, BW's award-winning chief economist, provides his unique perspective on the hot economic issues of the day. From globalization to the future of work to the ups and downs of the financial markets, Mandel-named 2006 economic journalist of the year by the World Leadership Forum-offers cutting edge analysis and commentary.