{"id":35976,"date":"2018-07-16T07:27:02","date_gmt":"2018-07-16T12:27:02","guid":{"rendered":"http:\/\/olduvai.ca\/?p=35976"},"modified":"2018-07-16T07:27:02","modified_gmt":"2018-07-16T12:27:02","slug":"record-deficits-stronger-dollar-equals-record-china-trade-deficit","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=35976","title":{"rendered":"Record Deficits, Stronger Dollar Equals Record China Trade\u00a0Deficit"},"content":{"rendered":"<header class=\"entry-header\">\n<h3 class=\"entry-title\"><a href=\"https:\/\/tomluongo.me\/2018\/07\/13\/deficits-dollar-equals-china-trade-deficit\/\">Record Deficits, Stronger Dollar Equals Record China Trade\u00a0Deficit<\/a><\/h3>\n<\/header>\n<div class=\"entry-content\">\n<p>Sometimes math is a real bitch.\u00a0 \u00a0Donald Trump is a smart guy.\u00a0 I know he knows math.<\/p>\n<p>Too bad he\u2019s ignoring it.<\/p>\n<p>Here\u2019s the gig.\u00a0 The title says it all.\u00a0 Government spending is rising rapidly.\u00a0 More actual money is flowing into the US economy.\u00a0 Where is that spending going?\u00a0 To buy cell phones, computers, cars, office supplies and all the rest.<\/p>\n<p>It doesn\u2019t matter if the purchase is made at Best Buy through a Purchase Order, the money still goes to stuff built and imported from China.\u00a0 The second order effect is that even if it goes to subsidize a farmer in Iowa or a defense contractor in California, that money winds up in the hands of a consumer who does what?<\/p>\n<p>Goes to Best Buy and buys a new TV.\u00a0 This isn\u2019t rocket science folks, it is simple cause and effect.<\/p>\n<p>More money chases those goods.\u00a0 Despite the naysayers, Apple is selling a crap-ton of $1200 phones\u2026. built where?\u00a0 China.<\/p>\n<p>So, the budget deficit thanks to record spending is fueling the very trade deficit with China that Trump is complaining about daily.<\/p>\n<p>Here\u2019s the math.<\/p>\n<p><strong>Big Badda Boom<\/strong><\/p>\n<p>First up is the budget deficit numbers through nine months of fiscal year 2018, <a href=\"https:\/\/www.zerohedge.com\/news\/2018-07-12\/us-budget-deficit-hits-607-billion-9-months-spending-interest-explodes\">courtesy of Zerohedge<\/a>.<\/p>\n<blockquote><p>This resulted in a\u00a0<strong>June budget deficit of $75 billion<\/strong>, better than the consensus estimate of $98BN, and an improvement from the $147 billion deficit in May and\u00a0<strong>as well as slightly less than the deficit of $90.2 billion recorded in June of 2017.<\/strong><strong>This was the second biggest June budget deficit since the financial crisis\u2026<\/strong><\/p>\n<p>\u2026The June deficit brought the\u00a0<strong>cumulative 2018F budget deficit to over $607BN during the first nine month of the fiscal year, up 16% over the past year;<\/strong>\u00a0as a reminder the deficit is expect to increase further amid the tax and spending measures, and rise above $1 trillion.<\/p><\/blockquote>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Record Deficits, Stronger Dollar Equals Record China Trade\u00a0Deficit Sometimes math is a real bitch.\u00a0 \u00a0Donald Trump is a smart guy.\u00a0 I know he knows math. Too bad he\u2019s ignoring it. Here\u2019s the gig.\u00a0 The title says it all.\u00a0 Government spending is rising rapidly.\u00a0 More actual money is flowing into the US economy.\u00a0 Where is that [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,5],"tags":[130,9937,16963,805,806,3222,827,839,4318],"class_list":["post-35976","post","type-post","status-publish","format-standard","hentry","category-economics","category-geopolitics","tag-china","tag-tariffs","tag-tom-luongo","tag-trade","tag-trade-deficit","tag-trade-war","tag-united-states","tag-us-dollar","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/35976","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=35976"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/35976\/revisions"}],"predecessor-version":[{"id":35977,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/35976\/revisions\/35977"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=35976"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=35976"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=35976"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}