Boy are we in trouble. As pointed out by the
Associated Press, we have a record high trade deficit, lackluster jobs growth, and soaring crude prices. I wasn't alive during the great stagflation of the 70's, but I know that Economies change, but history repeats itself.
Associated Press
Trade Deficit Soars; Jobless Claims Rise
Thursday October 14, 8:08 pm ET
By Martin Crutsinger
U.S. Trade Deficit Surges to Second Highest Level in History; Jobless Claims Increase by 15,000
WASHINGTON (AP) -- The trade deficit jumped to the second-highest level in history as surging demand for foreign oil swamped a small gain in U.S. exports, the government reported Thursday. America's trade gap with China hit an all-time high as retailers stocked up on cell phones, toys and televisions in preparation for Christmas sales.
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In a second economic report, the Labor Department said the number of Americans filing new claims for unemployment benefits rose by 15,000 last week to a seasonally adjusted level of 352,000. The four-week moving average of claims, which smooths out weekly changes, rose by 4,000 to a seven-month high of 352,000.
The jobless claims report reflects a labor market that is continuing to disappoint economists' expectations. The country added a lower-than-expected 96,000 jobs in September as the unemployment rate held steady at 5.4 percent.
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Democrats contend President Bush's failed economic policies have pushed the country back into a period of twin deficit troubles with the economy buffeted by runaway federal budget deficits which increase domestic demand and send the trade deficit soaring.
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Democratic presidential challenger John Kerry has pointed to the string of record trade deficits run up since Bush took office as evidence that the administration has failed to protect American workers from unfair trade practices engaged in by low wage countries such as China.
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Now, I know that not everyone is good at Math here, but let us do a simple formula.
High National Debt + High Trade Deficit + Rising Interest Rates + Lackluster Jobs Performance + Soaring Commodities Prices = X.
If you said that X = "we're fucked" boys and grils, then you get an A.