US Trade Deficit SA

US Trade Deficit SA

It is sending USD overseas that have lost appeal and are driving the USD down to levels where they get spent here, hence the falling trade deficit.

2 Responses

  1. yes, that’s the big question.

    my best guess is the trade gap is heading towards 0. I just don’t see who/what/where will replace the foreign desire to accumlate $US without the CB’s and monetary authorities buying anymore.

    That means the dollar trades at a level that corresponds to a much lower trade gap

    i expect the next rade gap report to be substantially lower- maybe down to the low 50 billion level, as the detail of the import component looks like a timing zig

Leave a Reply