I sure hope that the US is exporting a lot of "intangibles" that don't show up in the trade data, and generating lots more intangible dark matter to offset all the external debt that the US is taking on.

Because the tangible deficit sure seems to be growing.

Exports are doing fine.  January exports are up 12% y/y.   Boeing had a good month.  And corn and soybeans seem to be flowing out of the mouth of the Mississippi to world markets again.

The argument that the trade deficit is growing because the world isn't growing doesn't hold water.  Right now, strong global growth is propelling strong US export growth.  Even with a stronger dollar.

But 12% y/y export growth doesn't cut it if imports are up by about 16% y/y - and non-oil imports are up 11.2% y/y.

The real story in my book is the continued acceleration in non-oil imports.  

Consider the trend in non-oil goods imports

July: $116.2b (roughly the same as in the first half of 2005)
August: $117.3
September: $120.2
October: $122.3
November: $121.5
December $125.35
January: $130.1b

You don't need to be a rocket scientist to see something of an acceleration in US imports of "tangible" goods - even leaving out oil.    Just look at the graph showing the recent trend in non-oil imports (goods and services, a bit different than the goods only data above) below the fold.