And Another Thing on the Trade Deficit

And another thing on the September trade deficit -- it came in at –56.45 billion, down from August’s revised number of –56.85 bln. The August number was revised from –57.6 bln. Analysts were expecting the September reading to come in at –58.5.

So, it's party time, right? Not so fast. The big deficit that worries us is the deficit with China. But the deficit with China actually grew to –23.77 billion from –22.53 billion. With China accounting for such a large percentage of the trade deficit and it rising, as my friend and commodities broker Charlie Nedoss says, "it is like putting lipstick on a pig to say that this is a positive number."

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