Economists and other idiots, incapable of analyzing data that goes any further back than the most recent data point, hailed the statistically insignificant $0.7 billion drop in the May trade deficit, released Friday by the Commerce Department, as evidence of a shrinking deficit and rising exports. If they looked back just one more data point to March instead of April, a time frame that exceeds their memory capability, they’d be looking at a more significant rise in the deficit instead of a decline. And if they looked back even further – like a year or even five years – they’d see that there’s no decline at all. The trade deficit remains stuck at about $60 billion per month, steadily sucking the life blood from our economy to feed a swarm of parasite mosquitoes in a process known as “globalization.”
The following is the most idiotic statement in the whole article:
The strength in the trade sector, which is often blamed for U.S. job losses, shows how the mortgage market crisis has turned the U.S. economy “on its head,” said Joel Naroff, president and chief economist of Naroff Economic Advisers.
“Housing is now the ‘American Nightmare’ while trade is our salvation,” Naroff said.
Only an economist could look at a $720 billion per year trade deficit and see it as “our salvation.” Satan himself couldn’t do a better job of making the fires of hell seem cool, refreshing and appealing.
Here’s the next dumbest statement:
… Gutierrez (U.S. Commerce Secretary) … urged Congress to give exports a further boost by approving free trade pacts with Colombia, South Korea and Panama that have been stalled since last year.
Trade agreements with Colombia and Panama would be inconsequential, but only a fool would suggest that a free trade pact with Korea would “give exports a further boost.” Korea is perfectly free to buy all the American products they want right now. We’re not standing in their way! We need look no further than our free trade results with Japan to see how well a free trade pact with Korea would work. Korea is even far more grossly overpopulated than Japan and, consequently, even more incapable of consuming American products. (See Five Short Blasts for a better explanation of the reason.)
There are two key take-aways from all of this data:
U.S. imports rose 0.3 percent to a record $217.3 billion. Overall imports of non-petroleum goods set a record, as did three smaller categories: food, feeds and beverages, capital goods and consumer goods.
The closely watched trade deficit with China widened 4 percent in May to $21.0 billion. However, for the first five months of 2008, the gap totaled $96.0 billion, virtually unchanged from the same period last year.
I guess we’re supposed to draw some comfort from that last sentence. It’s like telling a drowning man that the water is only just slightly over his head.
Unbelievable. Our economy stands on the brink of collapse, with our biggest financial institutions drowning in debt and government-issued securities looking more like “junk bonds” every day, and still economists can simply shrug off a monthly $60 billion deficit. The universities who “educated” these people should be ashamed of themselves.