Americans consume goods other people produce. As America offshored its manufacturing, it promised to supply the world with high-priced services and technology in exchange. But as it turns out, that promise never materialized.
The ballooning overall trade deficit bears this out. It leaped to another record high in March, surging 5.6% month-on-month to a new worst-ever $74.5 billion. That was 52% worse than in March 2019.
Imports into the US of gold, silver and other precious metals surged last year.
The value of precious metals pouring into the US hit a 19-year high in 2020 and doubled the volume of 2019, according to an analysis of census trade data by USA TODAY.
It looks like Donald Trump is launching a full-blown trade war. Not to worry though. According to the president, a trade war is “easy to win.”
When a country is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win. Example, when we are down $100 billion with a certain country and they get cute, don’t trade anymore-we win big. It’s easy!”
Peter Schiff has a little different take. He said in his podcast last week winning a trade war isn’t so easy. In fact, America can’t do it.
