Report: Trump administration eyes changes to trade deficit calculations

[EC]

The Trump administration is considering changing how U.S. trade deficits are calculated, a move that would make the deficit look larger on paper, the Wall Street Journal reported.

People involved in the discussions told the Journal that the leading idea is to count “re-exports” — goods that are imported to the U.S., and then exported to a third country unchanged — as imports, but not exports.

The change would inflate the trade deficit number, an important figure in trade negotiations and policy.

For example, under new calculations, the $63.1 billion trade deficit with Mexico last year would become a $115.4 billion deficit.

One person familiar with the discussions told the WSJ that the new methodology could even convert a trade surplus into a deficit.

More: http://thehill.com/homenews/administration/320320-report-trump-administration-eyes-changes-to-trade-deficit

[Suppressed]

Trump: Fake Math

[EC]

Expand?

I know two things about economics - jack and all. Can run a household, but that's my limit.

[FS7]

That is straight fraud.

It's unclear precisely how it's calculated now, but a half-second of logical thought should tell you that it is either neither or both - it should have no effect on the ledger, ideally, but offsetting imports and exports are equally viable (even if they skew the totals somewhat).

But then, while it was bad when the leftists manipulated the facts regarding unemployment, global warming, and everything else, now it will be OK.