So Does The Spike In Chinese Exports Mean A Comparable, And GDP-Reducing, Surge In US Imports?

Tyler Durden's picture

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Robslob's picture

It's called the boomerang trade.

morkov's picture

trade surplus does not mean market exports...

Bindar Dundat's picture

Very solid analysis! Simply the best site I have ever been part of!


oogs66's picture

Wasn't QE2 supposed to help our exports? 

camaro68ss's picture

QE2 is only supposed to help the bankers up top, we get the inflashion beat down at the bottom

lizzy36's picture

Well according to Janet Yellen FRBSF it was supposed to create 3m jobs.

But i have a theory that in order to be a member of a Federal Reserve Board, one first has to graduate (with a Ph.D) the "school for people who can't do math good".

Ruffcut's picture

Chiner is not stealing jobs so much as the US is giving them away. Open free market global strategy, and working quite well.

CreditCrumbs's picture

And that's because the elite of both countries benefit from it. US elite benefits from fatter profit margin and exec bonuses when production and jobs move to China. China elite benefits from increasing employment and skimming off the top of disposable Chinese migrant workers. 

Oh regional Indian's picture

Rather than trade partners and MFN's to each other, the US and China are locked in a death-grip, we'll both go down together pact.

Those usually end in tears.

I think the transfer of technology and machinery is now complete.

Perhaps war is around the corner.


101 years and counting's picture

oil imports are down and US exports of gas and distillates are up, which could result in GDP "boosting" decline of the trade gap. 

schizo321437's picture

Move printing presses to China, and they can send goods straight to landfill. Efficient.

Oh regional Indian's picture

Good one Schizo.
The Cradle in Grave solution.


Kayman's picture

"Move printing presses to China, and they can send goods straight to landfill. Efficient."

Schizo    Best summary of the China/US relationship on record.  Top of the class.

Thank you.  Kayman

Hephasteus's picture

Burn thousands of gallons of oil shipping parts to factory to save on labor. Ship them really fast to burn more gas to keep up with demand.

Kayman's picture

American politicians fiddle, China tightens the screws.

Printing paper FRN's and conjuring up credit for the skimming criminals does not an economy make.

This is a painful, long-drawn-out death, but death it is.

Variance Doc's picture

101!~9.4259e+159, not 9.3e+157.  But, it's good enough for Keynesian work.

writingsonthewall's picture

This is the problem with the race to the bottom in the currency wars - everyone is doing it - so from month to month we have a new 'winner' and this is why we get such fluctuations in the trade deficits.

Don't forget we also have Japan, Europe, UK and other nations all playing the same game. You see where these idiots fail is they don't look at past crises and try to relate them to now. They also only have 1 'playbook' for recovery - which is 'devalue and export your way to growth'


Unfortunately the Europeans have taken this privilege from themselves, the Japanese can't go any lower or looser and have been doing this for decades now, the US is the reserve currency and this has massive implications (despite what BB preaches) and the rest are all playing the same game.


If everyones salvation is to export their way to recovery - then who is buying?

This has turned into an interesting experiement in international politics as we see the self inflicting harm that the determination for each nation to follow it's own self interest at the cost of all other interests.

Self interest is a failed ideological solution to our problems - the banks demonstrated this on a business level and now the politico's are going to bring the world to it's knees with the same policy.


We all share this planet - it's time some reckless arseholes worked this out before they collapse the system again and we go back to 1930's protectionism...which is the ultimate form of political self interest over economic reality.

Game theory my friends, it's all game theory....

Lews Therin's picture

Your reasoning is almost exactly the same as my reasoning... for owning Gold!  Its a race to the bottom for all currencies.  Simpler to go with Gold and not bother trying to jump to or jump off "least stinky" currencies.  


All of this currency shit will not end well.  


I confess to reading stuff from Doug Casey.  I don't always agree with him but he did say one thing that stuck with me:  "Nation States have to go, they're obsolte".  Doug Casey didn't say that exactly but that was what he meant.  I do think the idea of "nation states" are part of the problem.  That along with central planning and socialism/fascism/communism...


Mountainview's picture

There should also be a blackmarket for Renminbi. It can only go up. It already exists in Hanoi. North Vietnames

prefer Renminbi over Dollar for blackmarket trades.

LawsofPhysics's picture

This guy is a clown.  If you don't like the funny money, demand payment for oil in something else. 

ExpendableOne's picture

Didn't qadaffy dabble in gold for oil?  Look what it did to his country.

schizo321437's picture

And it all comes a tumblin...

slewie the pi-rat's picture
So Does The Spike In Chinese Exports Mean A Comparable, And GDP-Reducing, Surge In US Imports?



ThirdCoastSurfer's picture

"what an exporter calls a March export to the US may be different than what the US calls a March import"

Add this to list that includes other new phenomena like snow, cold and water.