With China’s export-driven economic miracle cooling fast, the trade environment is becoming increasingly harsh for U.S. exporters. Key trading partners are driving their currencies down and increasing export subsidies to minimize the damage of a global slowdown. The U.S. dollar and economy are looking relatively strong, but that won’t last if the U.S. continues having an unfavorable balance of trade in goods of $29 billion per month with China and $14 billion with the EU — as it did in June. Jobs have become America’s Number One export. Killing the Export-Import Bank, America’s sole export credit agency, in this environment looks crazy. I have written a commentary for Forbes here.
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