Hello fellow rebel capitalists hope you're well so breaking news the trade deficit

or the United States has actually shrunk by the largest percentage since 2008 and the GFC.

So just looking at it on the surface you'd say well this is great news this is

fantastic. We're having a

manufacturing renaissance the exports are booming but then you've got to read the

fine print and you see that the trade deficit is dramatically shrinking, not because

our exports are increasing, but because our imports are decreasing, which would lead you to believe that this is a sign

that aggregate demand is really, really, really shrinking in the United States.

And you juxtapose this to the first story we had today where the jobs

numbers were what a hundred thousand more than expectations and then you kind of have to scratch your head and say, okay, well, this is an outlier number for sure.

Does it mean anything or how much does it mean? How much weight should I give this number and we were talking

about the labor force participation which didn't specifically talk of which didn't really

pertain to the jobs number because that really more pertains to the unemployment rate.

But we are talking about how if we don't have any more jobs today than we had back in 2019,

even though over the last year, we've gained a lot of jobs that just means

that we're replacing the ones that we already lost so that in and of itself isn't

necessarily a good thing on net balance.

Well, let's get into this trade deficit because this is really interesting.

We're going to go over to Zero Hedge, and here's the chart that I use for the thumbnail. So the title here, U.S. Trade Deficit unexpectedly

plunges, meaning it decreases in biggest drop since GFC, global financial crisis.

In a day when strong jobs data, the ADP number is what we just spoke of in the last video, has been

viewed by markets as bad for risk assets.

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