Jeff Thredgold's Tea Leaf - "Twins No More"

During the past 30 years or so, American economists talked about the "twin deficits," i.e. those of the budget and of global trade. The budget deficit was viewed as the more critical by many, while others wrung their collective hands about the deficit in trade with other nations.

At times, both deficits grew. At other times, both deficits declined. Earlier in this decade, the budget deficit was in decline, while the trade imbalance with the world was rising rapidly. These deficits are now moving in opposite directions.