Actually, that is not as bad as it once was. In 2006, the U.S. was importing 12.5 million barrels of Oil per day...
Click this link. Notice how the U.S. trade deficit just keeps getting better? That's mostly because oil imports have steadily declined (keep that in mind the next time this administration takes credit for bringing the trade deficit under control). Let's use an expected average of the past 6 and next 6 month's average of $30 billion per month, or $360 billion per year.
Not to worry, the trade deficit is going to keep getting better! Oil imports WILL approach zero sometime by the end of the decade, and the U.S. trade deficit will be a thing of the past.
Good thing, too. We don't need any competition for funding the world's largest debtor nation's incredible liabilities - not even from ourselves.
Still I wonder... without Oil... how do we pay back the national debt (especially as it smashes through 100% of GDP)? Is it a coincidence that as the trade deficit falls the budget deficit just hit a monthly record? NAFC. Not even a little bit.
How does anybody pay back any of their debt? Is the net of all this deflationary? Or inflationary?
More soon...