When I was nosing around the balance-of-trade numbers, I found something curious. We understand why there was a recent diminution in the balance-of-trade [the Recession], and we worried that it’s headed back in the last few months. But why was there such a rise in the monthly trade deficit from 2003 to 2006? It’s close to double in that period! Well, it seems I came in at the middle of the movie. Here’s a longitudinal graph for a greater period [cumulative debt rather than monthly]:
And speaking of deficits and owing the rest of the world, there’s something called the NIIP:
Net International Investment Position = domestically owned foreign assets – foreign owned domestic assets
So try this quote on for size: "Detiorating U.S. net international investment position (NIIP) has caused concern among economists over the effects of outsourcing and high U.S. trade deficits over the long-run. Anyone with a shred of common sense knows it is in fact the US having it’s USSR/1989 moment and Obama is equivalent to Gorbechev – overseeing the controlled collapse of a hyperpower." Well, that’s certainly something to ponder…
This is just too frightening to contemplate. I need to go lie down.