The trade-deficit hawks are sharpening their talons. As the already ballooning imbalance was reported to have skyrocketed 16.3 percent in June to $24.6 billion (a new record, natch), a blue-ribbon congressional committee opened its doors Thursday to answer the big question: Should we do anything about it? Its no easy call for the 12-member U.S. Trade Deficit Review Commission - free-traders and protectionists are like the Hatfields and the McCoys, and this group is split right down the midddle. The stock market got a little jittery on the news, mainly because it spells interest-rate cut. But to TIME senior economics reporter Bernard Baumohl, who doesnt have to worry about the textile-worker vote, its relatively simple: Leave well enough alone. "The deficit is high, and it will almost certainly continue to grow in the near future," says Baumohl. "But its a product of U.S. strength, not weakness. And trying to trim it would actually be bad for the economy."

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With Japan, Asia, Latin America and most of Europe still in the economic dumps, and American consumers flush with cash, its only natural that foreign goods — cheap foreign goods - are streaming into the U.S. This being the global economy, there are winners (U.S. consumers and inflation hawks, and those struggling overseas economies) and losers (low-skilled U.S. workers getting undersold by the cheaper labor abroad). But this being the global economy, it all evens out in the end. "When the rest of the world starts to pick up again, those countries will start buying the value-added goods that the U.S. has a competitive advantage in. The dollar will get weaker - as its already getting - and U.S. exports will become cheaper," says Baumohl. "Theres a natural correction coming. Theres no sense in raising trade barriers that will ultimately hurt everyone." Thats when Pat Buchanans pitchfork act will start to lose its charm.