Today’s numbers disappointed some people. June trade deficit +6.1% at $58.8 billion, about 5.7% of GDP. The bitg bulge in the number is rising imports since the US recovery picked up steam, although oil imports are a factor too. I worry more about exporting capital, especially technology capital, as the US share of global communications equipment has fallen by half, from 40% to 20% over the past 5 years.
Other numbers: July Import prices +1.1% (oil prices), August Michigan consumer confidence index down, and yesterday’s advance retail sales report (0.3% ex autos) was a little weaker than people wanted to see.
Bunk. Growth is very strong. Use this passing cloud of worries to buy other people’s stock at better prices.
JR
Bruce –
Agreed, and Volker, Rubin, Krugman, Soros and Buffett agree too. But bulls like Rutledge always seem to avoid answering that particular question. Could be because he runs a fund, so maybe it’s just wishful thinking.
How much of the growth in the US is based on borrowed money. Sometimes it seems that the only thing that the US manufactures anymore is houses and we are borrowing money from overseas to finance the housing boom.
The US is growing faster than any other developed country – but how much of that growth is financed from overseas in money that will have to be repayed – with interest?
Bruce,