Quote:
Originally Posted by GGG
The trade deficit being a problem is a myth. We have a slight surplus if you don’t count the oil and gas we ship them which is essentially a flow through credit that they mark up $10 a barrel on.
Essentially they generate a trade surplus with other nations by selling our oil and a trade deficit by buying our oil. This transaction is a huge win for them.
Tombes discussion on the topic
https://thehub.ca/2025/01/22/trevor-...better-option/ |
US does not have surplus with other countries, it runs a massive deficit. But cheap Canadian oil doesn't seem like a bad thing for the US, I agree.
I read his article. His suggestion is that a stronger Canadian economy results in higher CAD, fewer exports, more imports and a trade deficit.
Everything goes in cycles. Long term trade deficits at some point correct themselves and vice versa. No one has really cracked the code on the perfect balance or else we would never see recessions, inflation etc.
It's a complicated ####ing world. Made more complicated when some of the largest economies in the world don't operate under free market principles.
Everyone who claims to know how to "fix" things is full of it.