Public Service Announcement

In general, I try to stay away from macro-issues on this blog. I find that there are too many factors that affect the big picture to be able to make any sort of meaningful comment. However, I ran across an article today on the trade deficit and I can't resist commenting. The title of the article is "Trade Deficit Narrows to $64.3B in Sept.".

If I was writing the article, I would have named it "Trade Deficit Continues at Unmaintainable Levels". I think that any wording which puts a positive spin on the trade deficit is misleading and can only lead to harm. The only reason the deficit even dropped was due to the decrease in oil prices. The fact remains that the trade deficit is running at a level of approximately $2500 per American per year. Children, elders, everyone included. Nobody seems to be doing anything about it. Writing this blog is the 1 thing that I can do.

For those who don't follow him, even Warren Buffet is alarmed by the trade deficit, and is hedging his bets by investing in foreign securities. Warren Buffet is the second richest man in America (if not the world) and is probably the greatest investor ever. Have a look at his 40-year record if you don't believe me.