This means that America will continue to be a debtor nation much like any third world nation. We produce very little but consumer plenty...of foreign products. And how do we pay for these imported goods, as we have for decades? By putting it on a credit card. Because all the good paying manufacturing jobs have been outsourced. Trade is a component of GDP. Meaning, trade deficits rob our economy. It is also contributes to our foreign debt. That means we have to borrow to pay off the Chinese. Recipe for more disasters. Unfortunately, the last politician to talk about this issue was - Ross Perot. And he ain't running for President anymore.
The U.S. trade deficit shot up in July to the highest level in six months as a surge in shipments of foreign oil and autos pushed imports up by a record amount.
The Commerce Department said Thursday that the trade deficit rose 16.3 percent to $32 billion in July, much larger than the $27.4 billion imbalance that economists had expected. It was the largest imbalance since January and the percentage increase was the biggest in more than a decade.
Imports rose by 4.7 percent, the largest monthly advance on records that go back to 1992, while exports edged up by a smaller 2.2 percent. Both gains provided evidence that the most severe recession since World War II was beginning to lose its grip on the global economy.
That would explain our auto industry is being taken over by foreigners.
General Motors Co. agreed to sell its Opel unit to Magna International Inc., accepting the German government’s preference over a financial investor that the U.S. carmaker had favored.
Magna, Canada’s biggest auto-parts maker, and its Russian partner OAO Sberbank will acquire a 55 percent stake in Opel, Detroit-based GM said in a statement. GM, Magna and Germany resolved disputes over Opel’s access to GM intellectual property and financing issues in the past two weeks, according to a person familiar with negotiations.
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