Trade Deficits: In Bloom, or Withering?

by: Paul Kedrosky

There is little doubt the U.S. trade deficit, having declined a great deal already this year, is going to decline further over time. But the nutty fixation with bingo-calling and over-interpreting its every move drives me nuts.

Case in point, today's smaller than expected trade deficit for August, which came in at $30.7-billion versus a forecast of $33-billion. So far this year up and down deficit months have oscillated fairly nicely. Reading overmuch into it strikes me as nuts.