While Washington remains self-absorbed in budget deficit arguments over who can cut more of the things We, the People do to make our lives better. Meanwhile January’s trade deficit numbers are out, showing where the real damage is being done.
- The U.S. international goods and services deficit rose to $44.4 billion, up from $38.1 billion in December (revised).
- The U.S. goods deficit with China rose to $27.8 billion in January, up from $24.5 billion in December.
- The U.S. goods deficit with Japan also increased, to $6.1 billion in January, up from $5.7 billion in December.
Again, China is the biggest problem.
- U.S. exports dropped 1.2% to $184.5 billion, due to lower sales to Europe, China, Japan and Brazil.
- Imports rose 1.8% to $228.9 billion with oil imports up 12.3 per cent.
- U.S. exports to the European Union dropped by 6.4% as austerity (contractionary policy) slows the EU economy (contraction).