i am as much into what is going on in lebanon right now as the next person, but there was a story in the journal yesterday that merits some attention. exports from the u.s. have increased 10% over the past year. the strongest growth came in the form of capital goods. yes, goods that come from manufacturers. you know, the same ones we hear are that have had such a hard time the last few years, the main reason the u.s. has such a large "trade deficit", as they like to call it (or, as i like to call it, the foreign direct investment surplus).
this is just further proof that the current account of the u.s. looks the way it does not because of a manufacturing decline. or even, for that matter, "over-consumption". even when one thinks about the auto industry...the u.s. auto industry is not in decline; u.s. autoMAKERS are. go tell the domestic toyota, honda, nissan, hyundai, etc. manufacturing plants and employees that the u.s. no longer has an auto industry. we still do, it's just under different management, and it's WORKING! such manufacturing plants push the current account in the direction it leans, but in the way of foreign (japan's toyota) direct investment (manufacturing). fdi is the flip side of a "trade deficit". is "eliminating the trade deficit", like too many clowns in d.c. think should be a goal, worth putting all those people who make those toyotas (i'm partial to toyota, since i've driven 4 in my life, two of which we currently own) out of work? that would sure tip things closer to balance.
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