Think the shrinking US trade deficit was a blip?
There has been a slow, steady improvement in the US trade deficit for years.
US trade deficit
It’s just the start with energy production expanding and moving into new fields.
The Obama administration just announced the approval of a third natural gas export hub. Total approvals represent 5.6 billion cubic feet per day of export capacity, which is worth about $25m/day at current prices, which is almost enough to shave $750m per month from the trade deficit — and the US gov’t is just getting started with more than a dozen other projects still awaiting review.
A US dollar with zero trade deficit is a powerful currency indeed.
