Trade Deficit Continues To Hurt the US

The US trade deficit is in the billions of dollars per month.   What does the trade deficit mean?   Simply that we are sending billions of dollars out of the country in a month and not returning billions of dollars in the form of sales.  The gap between the the out going dollars and the in coming dollars is a huge problem for the United States.   Sooner or later we will run out of money to continuing buying the goods that are imported.    If that happens inflation will start to rise and the dollar will begin to fall.   It will lead to the loss of more jobs and the real estate market will continue to fail.

What can we do to stop this?   First buying American will help.   Being realistic I doubt that will make much difference.    Second invest in businesses that provide unique products that can only be built in the US.     Prevent that work from going off shore.

It’s a matter of time before China starts sending products over here not going through a US company.   At that point more US based companies will fail.

As China’s economy continues to thrive at some point it prices to produce the products will not be so cheap.   We may see a shift from out sourcing and off shoring to in sourcing.