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Exporting Deflation

This is a syndicated repost courtesy of Slope of Hope – Technical Tools for Traders. To view original, click here. Reposted with permission.

Three topics were dominating the news this morning: the Gates divorce, inflation, and the trade deficit.

I’ve got nothing to say about the Gates divorce, except that it’s shocking and saddening. I had always assumed their being a couple was eternal, but who knows what happened behind the scenes. I’ve got no chart for it.

As for the data news stories, I looked at our Economic Database for some charts. When I was growing up, inflation is all people thought about. Over the past thirty years, it had faded from the national conversation. Let’s just say I think it’s coming back in style and will be here for a long time to come.

The import/export situation is equally interesting. If one were to look at the long-term chart of United States exports, one might conclude that, yes, there have been a couple of nasty dips (the financial crisis and Covid), but on the whole, things with U.S. exports are just hunky-dory and perpetually strengthening.

Factor in the imports, however, and you can see that things have never been worse, as the net trade balance chart shows. The notion that America is going to bring back manufacturing is ridiculous, I think. The answer always seems to to be “job training.” Unless “training” means “convincing someone to build an iPhone for $3 per day”, no, it isn’t going to happen.

Wall Street Examiner Disclosure: Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. No endorsement of such content is either expressed or implied by posting the content. All items published here are matters of information and opinion, and are neither intended as, nor should you construe it as, individual investment advice. Do your own due diligence when considering the offerings of information providers, or considering any investment.

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