The U.S. trade deficit widened by a greater-than-expected margin yet again in November , the Commerce Department reported this morning. U.S. trade deficit rose by $63 billion, over $5 billion more than expected by economists.
That’s a 9% jump from the last month -- the highest level since September 2006. Much of November’s deficit rise was attributed to record high oil prices -- up 53% year over year.
The annual trade gap through the end of November swelled to $650 billion.
This huge deficit is made all the more remarkable by one fact: The U.S. has also enjoyed the ninth consecutive month of record high U.S. exports. Arthur Laffer and a slew of neocon economists would argue that growing exports and an expanding deficit are both symbols of economic prowess.
Either that, or the dollar is falling off a cliff and the oil price is skyrocketing.
“The U.S. credit rating is at risk,” reports the Sound Of cannons Newsroom.
Citing a Moody’s report yesterday, they suggest what we’ve tried diligently to document in our documentary. According to Moody’s, unless the U.S. can curb booming health care and Social Security spending, it could lose its AAA credit rating by 2017. If the government were to lose the ranking -- which it has held since 1917 -- confidence in the U.S.’s ability to pay back debts will be seriously damaged, and the U.S. economy could face a ginormous slowdown. “The loss of the AAA rating is far from just symbolic,”
That’s a 9% jump from the last month -- the highest level since September 2006. Much of November’s deficit rise was attributed to record high oil prices -- up 53% year over year.
The annual trade gap through the end of November swelled to $650 billion.
This huge deficit is made all the more remarkable by one fact: The U.S. has also enjoyed the ninth consecutive month of record high U.S. exports. Arthur Laffer and a slew of neocon economists would argue that growing exports and an expanding deficit are both symbols of economic prowess.
Either that, or the dollar is falling off a cliff and the oil price is skyrocketing.
“The U.S. credit rating is at risk,” reports the Sound Of cannons Newsroom.
Citing a Moody’s report yesterday, they suggest what we’ve tried diligently to document in our documentary. According to Moody’s, unless the U.S. can curb booming health care and Social Security spending, it could lose its AAA credit rating by 2017. If the government were to lose the ranking -- which it has held since 1917 -- confidence in the U.S.’s ability to pay back debts will be seriously damaged, and the U.S. economy could face a ginormous slowdown. “The loss of the AAA rating is far from just symbolic,”
“Current holders of U.S. government debt include foreign central banks, huge pension funds and sovereign wealth funds. Some of these investors will invest only in AAA-rated securities. “When I read stories like this, it makes it harder than usual to stomach election-year politics. Is anyone paying attention to how much the government spends? Maybe with the market tanking, people will start to think about money again… and look less graciously on those who spend it so carelessly.”
Ha. It ain’t a problem until it’s a problem… then it’s a really big problem. And that’s what history labels a financial crisis.
Ha. It ain’t a problem until it’s a problem… then it’s a really big problem. And that’s what history labels a financial crisis.
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