The U.S. August net trade deficit has now been reported at U.S.$44.2 billion, with both imports and exports falling, but exports falling by a greater degree. For America, monthly net trade deficits are ‘business as usual’, and have been for over three decades. I continue to believe that where a country experiences continuing net trade deficits that leads to:
continuing weakness in comparative economic strength with its trading partners; and,
all other things equal, being a negative factor in revenue/expenditure balances at all government levels – and hence a negative contributor to government cumulative debt at all government levels.
