Congrats to the Trade Deficit!
Why?
Why setting a new record in March, that's why. The U.S. trade deficit widened 9.1 percent in March to a record $46.0 billion, the Commerce Department reported today.
The U.S. Commerce Dept. has the goods.
Record trade and governmental deficits simultaneously. Most excellent. For you Keynesian types, a round of drinks.
While we're on the subject of deficits 'aren't necessarily bad,'(a nod to Keynesians) I think it prudent to point out that bolstered by fresh tax revenue, the Congressional Budget Office took in 17.6 billion more than it spent in April - a traditionally strong month due to tax revenues. The CBO had estimated a surplus of $15 billion earlier this month. If you didn't look at the year over year comparisons, you'd think that this was pretty good.
In April of 2003, the Treasury Department reported a $51.1 billion surplus.
This April's performance is the weakest since 1994. Not so good.
I'll leave the Bush taxation transferal system(alternativley known as the 'cut services program') alone, as I think the numbers are sufficient commentary.
One more thought about the economy.
Greenspan, himself a Keynesian by deed, and a likely Wicksellian by self-reflection, warned last week that, "our fiscal prospects are, in my judgment, a significant obstacle to long-term stability because the budget deficit is not readily subject to correction by market forces."
This is certainly a truism. Politicos hold the national checkbook. What we've seen to this point isn't encouraging on governmental budgeting.
Why setting a new record in March, that's why. The U.S. trade deficit widened 9.1 percent in March to a record $46.0 billion, the Commerce Department reported today.
The U.S. Commerce Dept. has the goods.
Record trade and governmental deficits simultaneously. Most excellent. For you Keynesian types, a round of drinks.
While we're on the subject of deficits 'aren't necessarily bad,'(a nod to Keynesians) I think it prudent to point out that bolstered by fresh tax revenue, the Congressional Budget Office took in 17.6 billion more than it spent in April - a traditionally strong month due to tax revenues. The CBO had estimated a surplus of $15 billion earlier this month. If you didn't look at the year over year comparisons, you'd think that this was pretty good.
In April of 2003, the Treasury Department reported a $51.1 billion surplus.
This April's performance is the weakest since 1994. Not so good.
I'll leave the Bush taxation transferal system(alternativley known as the 'cut services program') alone, as I think the numbers are sufficient commentary.
One more thought about the economy.
Greenspan, himself a Keynesian by deed, and a likely Wicksellian by self-reflection, warned last week that, "our fiscal prospects are, in my judgment, a significant obstacle to long-term stability because the budget deficit is not readily subject to correction by market forces."
This is certainly a truism. Politicos hold the national checkbook. What we've seen to this point isn't encouraging on governmental budgeting.
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