In Five Short Blasts, I made the point that it’s imperative that the U.S. take actions that are within our control to make a difference in the trade deficit, and not rely on the promises of other countries. Here’s a perfect example:
It’s reliance on these kinds of promises that has kept our trade deficit soaring for over three decades. Everyone gets excited that a major concession has been made and that now we’ll be able to restore some balance to the trade picture. It won’t happen! Such concessions don’t address the root cause of the trade imbalance – the huge disparity in population density between the U.S. and China. I’ve seen this happen at least a hundred times in the last thirty years and our deficit only gets worse. The Chinese are probably rolling in the aisles with laughter at the naivete of our trade negotiators.