The news that US trade deficit is going down is a good news. But the reason of this is some funny. USA is exporting more... oil. Is the world's top economy becoming a resource one? Just like Saudi Arabia and Russia? And who is the buyer of this oil, as previously USA was the main market of energy? Isn't this the new technological and industry leader - Asia?

Oil money is an easy money. Mathematically money is money. But in a long time perspective it is more important the structure of the economy. A country is great with its industry and real production, and not with natural resources. Otherwise, USSR would win the Cold War. In fact, even now, Russia is the richest in natural resources country in the world.

At current moment countries like China and Germany are to become the new leaders. China has built a new industrial base literally from a scratch. At the same time Germany succeed to keep its industrial tradition in times when the bubble paradigm of "economy of services" and "economy of information" deluded the most of developed economies and removed the real factories from them, transferring them into pure consumers. And when consumers had nothing to give in exchange for real goods, the global (current) crisis exploded.

So now USA must be glad of... exporting more oil. Yes it is a salvation from the immediate crash. But is a type of shame for the former technological and industry leader in the world.

Exporting natural resources is not a long term strategy of success. USA is using new drilling technologies that will be implemented around the world. This will create an oversupply of oil and prices will drop. This will lower the economic growth of exporters and will help industrial nations.

The real future is with intellect and industry, and not with drilling. USA was the global leader when it was the top importer of oil and exporter of complex goods. This reminds the concept of the neo-protectionism is becoming more and more actual...

Dobri
Feb 9th 2013