A Record Trade Deficit Is Not Winning – Ep.  404

A Record Trade Deficit Is Not Winning – Ep. 404

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Merchandise Trade Deficit Largest Trade Deficit on Record
Today's rally had to overlook the bad news that came out today. I was watching CNBC this morning just before the news was announced and the anchor said, "We've got a lot of news coming out at 8:30 and I am going to go over the news items in order of importance. The first news item was the Durable Goods numbers (+0.8%), and then they went over the weekly jobless claims (202,000) and wholesale inventories (+1%). That was it. That was all they reported. They left out the most important number that came out at 8:30, which was the Merchandise Trade Deficit ($26 billion - largest trade deficit on record). But as far as CNBC is concerned, the trade deficit is immaterial. It doesn't even matter what the trade deficit is. In a way, they are right. because the markets couldn't give a damn.
People Don't Recognize that the Trade Deficit is a Bad Thing
At one point in time, the trade deficit was the most important number that came out every month. It was more important than the Non-Farm Payroll number. That's when people were smart enough to recognize that a trade deficit is actually a bad thing. But Donald Trump has made the trade deficit a big part of his Presidency. It was a big part of his campaign. You would think that maybe CNBC would consider the trade deficit important enough to even mention. If they were presenting the numbers in order of importance, at least mention it 4th, but they don't even mention it at all. That's how unimportant the trade deficit is.
Durable Goods Up Only Because of Defense Spending
But the Durable Goods number that came out (+0.8%) was reported as a good number because it was a beat. They were looking for -.5%. But the main reason that the headline beat was because of military orders - defense spending: aircraft. But if you take all that stuff out and you just looked at core capital goods, they were looking at an increase of .5% and we got a decrease of .1%. So the only reason the number went up is because the U.S. government took on more debt to buy more military equipment.



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NetSuite is offering a one-of-a-kind flexible financing program. https://netsuite.com/gold🟨 Sign up for Peter's most valuable insights at https://schiffsovereign.com📈 Invest like Peter: https://schiffradio.com/invest📘 Book Store: https://schiffradio.com/books👉 Follow Peter Schiff on Twitter: https://twitter.com/peterschiff👉 Follow Peter Schiff on Instagram: https://instagram.com/peterschiff👉 Follow Peter Schiff on TikTok: https://tiktok.com/@peterschiffofficial👉 Follow Peter Schiff on Facebook: https://facebook.com/peterschiffOur Sponsors:* Check out FRE and use my code LISTEN20 for a great deal: https://frepouch.com* Check out Infinite Epigenetics: https://infiniteepigenetics.com/GOLD* Check out Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.comPrivacy & Opt-Out: https://redcircle.com/privacy

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Get an additional 15% off an annual membership at https://masterclass.com/goldCut your wireless bill to $15/month at https://mintmobile.com/gold. $45 upfront payment required. For new customers on the first 3 month plan only.Join my Locals community to get The Pete Schiff Show ad-free! Plus get access to special live reports and Q&As. Visit https://schiffradio.com/premium to become a member.Invest like me: https://schiffradio.com/investSIGN UP FOR MY FREE NEWSLETTER: https://www.europac.comSchiff Gold News: http://www.schiffgold.com/newsBook Store: https://schiffradio.com/booksFollow Peter Schiff on Twitter: http://www.twitter.com/peterschiffFollow Peter Schiff on Instagram: https://instagram.com/peterschiffFollow Peter Schiff on TikTok: https://www.tiktok.com/@peterschiffofficialFollow Peter Schiff on Facebook: http://www.facebook.com/peterschiff Our Sponsors:* Check out FRE and use my code LISTEN20 for a great deal: https://frepouch.com* Check out Infinite Epigenetics: https://infiniteepigenetics.com/GOLD* Check out Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.comPrivacy & Opt-Out: https://redcircle.com/privacy

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