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This is what you get when the Gold & Silver Imports ARE BIGGER THEN THE PLASTIC CRAP THEY EXPORT!
reminds a bit of these projects they call "FAIR TRADE" over here where you can buy crap from the developped world for twice the price you pay in common retail.
I guess they have something just like it but with a inverse policy.
If you look at the chart there is a dip at the same time every year. The new year shuts China down for 10 days or so.
Yes Morph and it really shuts down hard. Westerners on the hamster wheel (particularly in the United States where our holidays ((Holy Days)) are mere Monday add-ons and all semblance of regard to tradition and ancestors is whored out by the media) cannot understand the extent to which commercial activity halts in the PRC during that holiday.
Nice gap down in the metals but I somehow don't like this dip. If the PRC is rocking to a close (they are the last bull) we will see more downside.
Selling cheap manufactured crap, undercutting manufacturing in the US and Europe and then turning around and spending the proceeds to buy out all the commodities to deliver a second blow to US and European manufacturers by driving up raw material prices can hardly be called trade.
Brilliant strategy for the Chinese and incredible stupidity for governments that allow this evisceration to be done to them.
Too funny. China posts a NUMBer and the world gets...shall we say, excited?
Look at how much importation of core commodities alone has accelerated in the past six months by them.
Interesting, as globalization dies it's natural death, deficits are going to be the order of the day.
India's surplus is so "light" (all service sector driven), it can vanish in a heartbeat.
Currency wars are over.... had a good laugh when I saw that.
The currency wars are over when China allows its currency to float freely and no longer pegs it to the dollar. Until then it is anyone's guess what it is really worth anywhere. So critics on both sides, i.e. undervalued vs properly valued can continue their arguments ad infinitum.
Does this have anything to do with the Chinese Girls Dating Website.
time to sum gum QE and stimulate internal economy mr Hu.
This is also what you get you are import more than 50% of the oil you burn...the ratio is very similar to the US....
Small factoid: Germany and France import less oil than they did in the 1970's... on a per capita basis the drop is quite dramatic.
They do a lot of nuclear, particularly the French and they also tax gasoline up to about $8 per gallon. The cars probably get two to three times the mileage they did back in the 70's and mass transit is better organized. I personally don't favor too many of those things or they wouldn't fly here very well.
Can't question the American way, can we? Non-negotiable I am told...
Aside: There is something exhilirating about going 175 mph through the French countryside knowing that the only fossils fuels being used are the lubricants and the plastics in the train and those inputs into building the infrastructure.
You can't eat plasma widesrcreens.
Oh, and commodity prices are way up across the board, and not only do they import a lot of shit, they are a primary driver for some of that demand, even piling the stuff over there in lieu of FRN's and EUROs and AUDs if you listen to some commentators here. That couldn't have anything to do with it, could it? Yeah it could. Let's pause to note that not all, by a long shot, of those imported commodities go back out transformed into trade goods. They've been building psychotic quantities of urban housing that no one there can afford, to the point where it is visible from space. Malinvestment. Big Time.
So now that they are not running a trade deficit with the U.S. anymore that means they don't buy anymore T bonds. In fact now they have the 'cover' to sell them, to make up their 'trade deficit'.
Brilliant. they are learning how to fuck back.
This will also give Bennie cover to keep the Qe going.
The bond is toast
How do you say 'voodoo economics' in chinese?
China unexpectedly swings to February trade deficit, 10 March 2011, by V. Phani Kumar - Hong Kong (MarketWatch)http://www.marketwatch.com/story/china-unexpectedly-swings-to-trade-deficit-in-feb-2011-03-09
The deficit might have implications for the pace at which China allows the yuan to appreciate against the U.S. dollar, say economists.
“One thing we are more certain about [from the data] is that China’s trade surplus is mostly likely to decline at a faster rate than anyone expected this year... A much smaller trade surplus means that the external pressure on yuan appreciation would be less,” said Wei Yao, China economist at Societe Generale in Hong Kong.
February’s deficit was China’s largest in seven years, according to Reuters.
B. of A. Merrill Lynch’s China economist Ting Lu wrote to clients that taking January and February figures together, China’s imports grew 36%, while exports accelerated at 21.3%.
“China’s trade balance could be back into surplus again in coming months after the distortion in Jan-Feb, but surging oil prices could add pressures,” Lu said, adding that a one dollar per barrel increase in oil prices could cut China’s annual trade surplus by $1.9 billion.
“On the positive side, the falling trade surplus might alleviate pressures on the [yuan] and also the need for the People’s Bank of China to hike required reserve ratio to lock liquidity,” he added.
A much smaller trade surplus means that the external pressure on yuan appreciation would be less
A much smaller trade surplus means that the external pressure on yuan appreciation would be less
I doubt the US citizens change their mind because of the chinese trade deficit.
A huge trade surplus is a hallmark of a colony - perhaps China is finally becoming a superpower now.
Germany and Ireland are still the bankers favourites - both with huge trade surpluses but not unlike siamese unborn monetory twins - one huge and growing and the other tiny and shrinking as the large sibling takes all the nourishment.
A miscarriage awaits.
Yuan appreciation in a year's time fell to 2.42% from 2.57%. The dollar/yuan exchange rate can trade up or down a maximum 0.5% in a given day from the mid-point, which is used by the PBOC to express the government's intentions for the currency.
The market widely expects the Chinese currency may rise 5%-6% this year as the government appears to be using the exchange rate to fight inflation.
So the US report shows the exact opposite of the China report...someone is fudging numbers.
Is any of this a surprise to us here at Zero Hedge. For those of you who are still questioning what is coming down, there is the dip to buy in miners and gold.
If Tyler Durden and cohorts actually believe that deficit number, put out by a government that tells more daily lies than the rest of the international community combined, I'm going to have to question any number/statistic put out by Durden and Co. from here on out. And that is not said facetiously.
Keep buying our debt, Chink! We'll pay you back after the next war!
This is not real guys.
This year, as chinese became a lot richer, they value their family time, holiday time a lot more than money. A clear sign of moving into middle class society. And therefore a lot less selling and a lot mroe buying.
The overly negative people need to wait at least a month or two before concluding anything..
You guys are too negative an unamerican. Cheer up and BTFD!!
Oh_bama, are you backing up your fellow troll Hamy? Yeah, Hamy how is your crapple stock doing today?
They should be able to write down 200-300 billion of treasuries over the next 5 years to offset any surpluses. (I am pretty sure accounting rules don't' matter anymore)
Believe any of these government supplied stats especially from China need to go see a medical professional.
You already forgot the cardinal rule: they can be whatever the fck they want them to be! who's checking?
i bet if you tallied up all the balance of trade reports from all nations, you'd find that there were substantial discrepancies between everyone's trade flows and that some countries' were reporting things differently from other countries.
if you didn't find that, then it is hard to imagine everyone being both accurate and telling the truth. if every report was in perfect agreement with each other, perhaps someone at the WTO, WB or BIS was massaging and managing the data reporting process.
i'd like to see someone balance all nations' reports on a slide show in a simple and straightforward manner is all i'm saying.
I guess this shows just how much gold, silver and natural resources that China is importing. LOL.
Imported food price is higher could be attributed to the depreciation of the USD. But if measure it in another currency you could have different results. China's inflation problem is the opposite of the US, where a currency that is kept artificially weak is driving higher food prices.
Similarly it is interesting to note that if you measure the oil price in another currency, it has not risen as much. For example the Oil price in Yen is still cost at equivalent to $65 per barrel.
Are you really trying to say that these psychics are saying that AIG will survive and continue to be successful they way they were in 2000? Let me know what you have to say, please. My e-mail address is
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