Publication

This document summarizes data on US international trade while speculating on the future of this global movement of goods. Since 1976, the United States has incurred continual merchandise trade deficits and 2004, which saw a record deficit of $651 billion, was no exception. The defecits serve to illustrate the shortage of savings in the domestic economy and a reliance on capital imports to finance that shortfall. Currency manipulation by countries such as Japan and China have compounded the problem by keeping foreign imports artificially cheap.