The U.S. Commerce Dept. announced the biggest U.S. trade deficit in nearly 3 years, $53 billion, a trade deficit far larger then the Obama Administration and most economists and pundits anticipated. This means one of the last vestiges of a supposedly recovering economy is now faltering and it is faltering despite a weak U.S. dollar which makes U.S. made goods relatively cheap.
If you are an American, it means more layoffs, or a softer paycheck and a dollar continuing to weaken, meaning your money is worth less. If you are a foreign national whose nation is trading with the U.S. it means your country likely ran a surplus but it also means the value of the money you got paid in is losing its value. This is especially so for China, Japan, South Korea, Germany and the OPEC nations.
My suggestion for those who ship the U.S. manufactured goods, is to think seriously about manufacturing more in the U.S. and to employ American workers, so many of whom need jobs. Without those jobs, they cannot continue indefinitely to buy your goods.
Dick
To learn more, please see "U.S. trade deficit jumps," Los Angeles Times http://articles.latimes.com/2011/aug/12/business/la-fi-trade-imbalance-20110812
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