The numbers do not lie

When it comes to the United States economy the number do not lie and they tell an ugly picture. The problem is these ugly numbers are not getting better. We find today the U.S. trade deficit surged in June to the highest level since October 2008 and imports of foreign consumer goods hit an all-time high. This is compounded by exports declining and another setback for American manufacturers. The deficit jumped 18.8 percent in June compared to May, widening to $49.9 billion, the Commerce Department reported. Exports slipped 1.3 percent to $150.5 billion. This story will not be in the New York Times or the Boston Globe as they believe everything is turning around. The turn around is the deficit in goods and services rose to the highest level since October 2008 when it was at $59.4 billion. Through the first six months of this year, the deficit is running at an annual rate of $494.9 billion. That is up 32 percent from the $374.9 billion deficit for all of 2009. The wider deficit in June will drop U.S. growth measured by GDP which was estimated at 2.4 percent for the second quarter. For June, the U.S. trade deficit with China rose 17.4 percent to $26.2 billion. This number had been steady at 15.9 percent for the first half of the year.

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