A rising sea of red ink in Washington D.C. isn’t the only alarming “deficit” that’s threatening American prosperity …
The U.S. trade deficit – which measures the difference between what America exports abroad and what other countries import to America – unexpectedly ballooned in June to $50 billion. That’s an 18.8 percent increase from the previous month and the highest gap since October of 2008.
What does this mean? Simple. America is producing (and selling) less goods than economists originally predicted, which bodes poorly for the so-called “recovery” we’ve been experiencing over the last six months – and poorly for the administration of President Barack Obama, which has bet the farm on the success of its “stimulus” plan. In fact, these numbers all but guarantee that the anemic 2.4 percent growth rate U.S. government officials predicted for the second quarter of 2010 will be revised downward, just as we predicted two weeks ago when the initial estimates were released.
For the year, the trade deficit is running 32 percent higher than it was last year – at an annualized rate of nearly half a trillion dollars.