Deficit Hits Six Year Low Amongst Trade Fears

February 11, 2009

US (ChattahBox) – An increasingly severe trade deficit is causing near panic in the business world, as we hit the greatest drop in trade in six years, with further losses predicted.

According to the US Department of Commerce, there was a 4% fall in December, and while that is not nearly as bad as had been predicted after November’s dismal trade results, it is still a significant drop. Both months ended the year at an enormous $677.1 billion deficit, in a steady decline since 2004.

The trade drop is creating even more tension from countries that feel they have been losing American support, such as China, which Obama has admitted he believed to be manipulating their currency, a sharp turn of opinion from former President Bush, who refused to acknowledge that possibility.

This, as well as other opinions, and measures, that are being encouraged (such as the ‘Buy American’ clause), is leaving many wondering if protectionism might cause further strains on the global society, and other wondering what choice in the matter we have.


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