Tuesday, March 7, 2017

Trade Will Be "The Problem" of Trump Administration

A rising dollar makes imports cheaper and exports, those goods US politicians are desperate to support, more expensive. As long as the dollar continues to rise against bearish expectations, a trend clearly described in the Matrix, the trade deficit with China, Europe, Mexico, and the rest of world will expand despite campaign promises to return the United States to past glory. While the Trump Administration wrestles with immigration, public healthcare, and numerous secondary problems within the first 100 days, they will soon recognize the dollar persistent strength as "The Problem" that challenges their Presidency. It's one problem cannot be tweeted, fast-talked, legislated, or executive ordered away. Border taxes and adjustments won't solve it until safe haven capital flows to the United States from Europe are reversed. Reversal of money would take real diplomacy and savvy to convince the Europe's delusional bureaucrats to ditch their jobs and dream of unifying the continent (EU) through economic and monetary policy.

Headline: Trade Deficit in U.S. Widens to Largest in Almost Five Years

The U.S. chalked up its largest trade deficit since March 2012 as a jump in merchandise imports in January exceeded a smaller gain in shipments overseas.

The gap in goods and services trade increased by 9.6 percent to $48.5 billion, matching the median forecast in a Bloomberg survey, Commerce Department figures showed Tuesday. The deterioration in January from the previous month reflected a 2.3 percent gain in imports, the most since March 2015, and a 0.6 percent pickup in exports.



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