Everyone Interprets The Trade Deficit 100% Wrong

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		Tech Entertainment Wall Street Markets Strategy Sports Lifestyle Politics Europe Video Latest Thursday, October 13, 2011 Everyone Interprets The Trade Deficit 100% Wrong As part of this morning's trade balance report, the July trade deficit was revised wider from $44.8 billion to $45.6 billion. Since the trade deficit gets subtracted from GDP, this is seen as a negative. ZeroHedge expects coming down ard revisions to Q3 GDP estimates. That may be possible, but this misses the big picture. Wide trade deficits are a sign of more robust growth. Here's a chart going back a long way that shows that nicely. When the trade deficit is shrinking, GDP tends to shrink too, and when it's widening, GDP widens too, even if the trade deficit comes out of GDP. Read » Also On Money Game Today: Oh Great, Now Investors Say They're Wildly Bullish Again This One Slide From Wal-Mart Basically Says It All... Oil Prices Are Down On Unexpectedly High Supply Huge Demand For 30-Year Treasuries As Operation Twist Begins Advertisement CHART OF THE DAY: Remember When The Market Crashed Through That Big Black Line? CHART OF THE DAY: There's Only One Industry That's Added Jobs Since The Start Of The Recession CHART OF THE DAY: The Stock Market Just Ripped Through This Important Blue Line Share this: Facebook Twitter Digg Reddit StumbleUpon LinkedIn The email address for your subscription is: ipat39@gmail.com Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the Money Game RSS Feed Business Insider. 257 Park Avenue South, New York, NY 10010 Terms of Service | Privacy Policy

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