Raymond Richman - Jesse Richman - Howard Richman
Richmans' Trade and Taxes Blog
Why is the media hiding the worsening US-China trade deficit?
Why is the American media misinforming the American people about the worsening US-China trade deficit? The graph below shows the actual trade deficit, with a 12 month moving average:
In February, the U.S. merchandise trade deficit with China hit another 12 month record, falling to $321 billion over the last 12 months. In 2012, the U.S. had a service trade surplus with China of $17 billion, so the U.S. trade deficit with China in goods and services is now about $304 billion as compared to $298 billion at the end of 2012 and $280 billion at the end of 2011.
Yet the mainstream media all reported that the U.S. trade deficit with China improved in February, ignoring the fact that it is always lowest at this time of year. Here's a sample:
So why are they all misleading the American people? In one of the articles that reported this misleading information, Martin Crutsinger of the Associated Press explained the context:
There are several possibilities. The simplest being that these reporters all crib their stories from each other. After one reporter wrote that the trade deficit with China shrank, the others followed suit.
Another possibility is that they are in campaign mode, and, like the D-Day planners who hid the Normandy invasion location with a bodyguard of lies, they are hiding the Obama administration's incompetence with a bodyguard of lies.
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