Trade Deficits Make America Poorer Not Richer
Peter Schiff explains why it is more important to acquire assets as opposed to debt with respect to the U.S. trade deficit. Peter’s clarification follows comments from Larry Kudlow, who is also speaking at the Orlando MoneyShow this week.
The MoneyShow Orlando runs between February 8-11, 2017. The annual event is being held at the Omni Orlando Resort at ChampionsGate. The event was designed for investors to learn about the risks, requirements, and realities of market timing and trading.
A key topic in Peter’s latest podcast was the unified U.S. trade deficit for 2016 which came in at a whopping $502.3 billion – the highest annual trade deficit in four years. Schiff believes this is a sign that the “unhealthy economy is getting sicker”.
Trump is moving to reverse trade deficits in the U.S. by boosting America’s manufacturing capability and threatening tariffs; however, Schiff warns that while tariffs may initially diminish trade deficits they would send the U.S. economy into recession.