Wednesday, May 11, 2005 - U.S. Trade Gap Fell 9.2% To $54.99 Billion in March - U.S. Trade Gap Fell 9.2% To $54.99 Billion in March


For several months, it has been clear that US exports are growing rapidly. The whining about the declining dollar is about to end!

Remember that once the dollar turns, foreign investors will make interest on US notes and bonds but they will also receive profits from currency appreciation. Investors often forget that starting with a low priced currency is like getting a 100 yard head start in a 200 yard race.

The US is ready to sell goods to the world. Unlike Germany, Japan and other nations which have not opened their doors to free trade, the US is competing on the open market. William Zollars, Chair of Yellow Roadway, said today that he is looking for 4% productivity growth this year! A company that increases productivity at 4% could make 4% more profits without increasing sales a nickle. Or a company could give labor 4% raises and still make have a significant profit increase!

Good times are here. The politicians and news media keep us focused on the negatives but good times are here.