Commentary: US faces twin deficit crisis
By Desmond Lachman in Washington
The US trade deficit has widened steadily over the past two years, reaching a record high of almost $1tn annually. As a result of Washington’s expansive budget policy at this late stage in the economic cycle, analysts expect that over the next two years the US budget deficit will rise to a peace-time high of more than $1tn. This makes it probable that the US will face a twin deficit problem – an outsized budget deficit and...