Why I don\'t listen to Lou Dobbs

Don Boudreaux says Dobbs is making up meaningless numbers. Seems to me that Dobbs is double counting. The essence is that Dobbs takes the current-account deficit and adds it to the government budget deficit. The current-account is an accounting of how goods and services flow between nations, while the government budget is just government transactions. Don is right saying the combination is meaningless, after all they measure two entirely different things. The double counting comes from the fact that contained in the current-account is the debt financing provided by foreigners to the U.S. government. A portion of the U.S. government's shortfall is already accounted for in the current-account. If Dobbs were doing this on a SEC filing, he'd be in all sorts of hot water. As it is he's just a lot of hot air.

UPDATE: If I'd actually Read the Whole Thing(tm) I would have noticed that Don also mentions the double counting bit. Go Read the Whole Thing.

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The number we should all be

The number we should all be focused on is the capital account which comprises both the financing of the current account (without which there would be no current a. deficit) as well as net foreign lending to us and our government. One counting, one number.

Personally I dont watch dobbs bcse he is not only a poor economist, he verges on the xenophobic.