Trade Deficit Suggests Very Good economy
Cato's Dan Griswold explains that the trade deficit has historically grown when economic growth has sped up and unemployment has receded. When growth has slowed and unemployment has increased, the trade deficit got smaller. This tends to belie the claim that jobs migrate overseas when the trade deficit is higher.
He suggests the worriers about the trade deficit (and he never touches the idiotic worry of foreigners supposedly selling off their US government securities):
Those who seek the Holy Grail of a trade surplus should be care what they wish for. The last time America’s jobless rate reached double digits was the early 1980's, when the deficit was a measly $5 billion.