February 6, 2013
This Energy Company Could Erase the Trade Deficit
Ask any economist about the future of America and you will likely get a sobering answer.
Data on exports and imports for the month of November 2012 showed the United States bought $231.3 billion of goods from foreign sources and exported only $182.6 billion of goods. To finance this $48.7 billion gap, the United States sells Treasury bonds -- which are basically IOUs financed by the government.
But the United States has been running a deficit for decades and the interest paid on the Treasury IOUs is a measly 2%, so why even worry about the trade deficit?