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Trade Deficit Surges, Hits $50.2 Billion, On Expectations Of $44.1 Billion, Major Downward Revisions To Q2 GDP Coming

Tyler Durden's picture


When we reported on the record surge in Chinese exports over the weekend we said that "the official read of the US trade deficit which will be reported on
Tuesday, will almost certainly spike, pushing GDP expectations lower yet
again." Sure enough, the US May trade deficit just exploded to $50.2 billion, far above the consensus of $44.1 billion, and much worse than April's revised $43.6 billion. Imports, not surprisingly, surged to an all time high $225.1 billion with exports lagging, even despite the relatively weak dollar in May, which declined modestly to $174.9 billion. From the report: "The U.S. Census Bureau and the U.S. Bureau of Economic Analysis, through the Department of Commerce, announced today that total May exports of $174.9 billion and imports of $225.1 billion resulted in a goods and services deficit of $50.2 billion, up from $43.6 billion in April, revised. May exports were $1.0 billion less than April exports of $175.8 billion. May imports were $5.6 billion more than April imports of $219.4 billion." Accoding to Bloomberg's Brusuelas, the key culprits were petroleum and industrial supplies. For those wondering what America exports and imports: "In May, the goods deficit increased $6.7 billion from April to $64.9 billion, and the services surplus increased $0.1 billion to $14.7 billion." So why do people care about the manufacturing CPI again? Bottom line: the bean counters will now be forced to revise their Q2 GDP forecasts well lower. And while Q2 is now a scratch, the problem is that this weakness is now continuing into Q3.


Full report here.


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Tue, 07/12/2011 - 08:42 | 1447264 Cassandra Syndrome
Cassandra Syndrome's picture

And the Dow rallies...

Tue, 07/12/2011 - 08:45 | 1447272 101 years and c...
101 years and counting's picture

the dow isnt rallying.  the EUR is rallying.  the dow is just hitching a ride.

Tue, 07/12/2011 - 08:51 | 1447285 Cognitive Dissonance
Cognitive Dissonance's picture

At this point all markets foreign and domestic are just cheap whores willing to take anything in trade.

Oops, was that my out-loud voice?

Tue, 07/12/2011 - 09:13 | 1447356 Harlequin001
Harlequin001's picture

It's a bit of a downer when the gold price is higher than the Baltic Dry...

Tue, 07/12/2011 - 09:16 | 1447363 Sudden Debt
Sudden Debt's picture


It must have been all Greek for them...

Tue, 07/12/2011 - 08:43 | 1447265 the not so migh...
the not so mighty maximiza's picture

I-PADS saved us!!!!!!

Tue, 07/12/2011 - 08:43 | 1447267 Cognitive Dissonance
Cognitive Dissonance's picture

That's gonna hurt the cheerleaders and other assorted enablers. It's not the fall that kills you, but the sudden stop.


Tue, 07/12/2011 - 08:43 | 1447269 Global Hunter
Global Hunter's picture

equity futures liked it.

Tue, 07/12/2011 - 08:49 | 1447284 trampstamp
trampstamp's picture

If you trade using fibs, it wouldn't have mattered. futures will hit 1317 this morning on ES... this is what happens after a pullback to the 6.18 almost to the tick ... then you'll see a bounce to the 3.82, which btw is around 1317. After that we'll have to see if they retest the highs or go lower. The futures are heavily traded using fibs regardless of news.

Tue, 07/12/2011 - 11:03 | 1447732 ElvisDog
ElvisDog's picture

Question for you (semi-serious) - if Fibonaci trading is a reliable investment strategy, then why aren't you and the other Fibonaci traders richer than Warren Buffet?

It seems that just last week technical analysis completely failed. The S&P was below a key moving average. The technical traders were expecting a test of the moving average and then a sharp leg down. Except it didn't happen. The S&P punched back through the moving average to the upside. If you had traded expecting a sharp leg down based on technical analysis you lost your ass.

Tue, 07/12/2011 - 09:02 | 1447317 SheepDog-One
SheepDog-One's picture

Equity futures are full retard....never trade on full retard.

Tue, 07/12/2011 - 08:45 | 1447273 Archimedes
Archimedes's picture

I think that FX guy (John Taylor) might be on to something.."By Q1 2012 we are going to be in a recession damn it!

Tue, 07/12/2011 - 08:45 | 1447274 King_of_simpletons
King_of_simpletons's picture

Recession 2012.

Tue, 07/12/2011 - 09:15 | 1447364 Harlequin001
Harlequin001's picture

Hang on, we haven't finished with 2011 yet...

2012 is a Depression...

2013, outright fail.

Tue, 07/12/2011 - 09:18 | 1447380 Incubus
Incubus's picture

how does this work?


failpression, bitchez


meh... /shrug

Tue, 07/12/2011 - 08:45 | 1447275 dumptakn
dumptakn's picture

I hear a big dump coming, honkies!

Tue, 07/12/2011 - 09:06 | 1447330 augie
augie's picture

you mean bigger than a 3700 to 1 sell to buy ratio? Yikes, I should buy some more ammo. 

Tue, 07/12/2011 - 09:40 | 1447470 Silver Dreamer
Silver Dreamer's picture

Is there ever a point when you have enough?

Tue, 07/12/2011 - 09:46 | 1447489 DosZap
DosZap's picture

Unlessyou have somewhere to cache it, just purchase enough to have on hand for the roving mobs.

When the .gubs come for it,you won't need any, if you do, your dead.

Door#1, or #2, which comes first.

$64k money is on #2.

Tue, 07/12/2011 - 10:35 | 1447612 Rodent Freikorps
Rodent Freikorps's picture

Distributed caches. Just use a vacuum sealer and bury a few.

PVC pipe makes a good storage container also.

Just leave one easy to find cache.

Tue, 07/12/2011 - 11:12 | 1447772 ElvisDog
ElvisDog's picture

How long do you plan on living in your survival bunker? If the Mad Max world you envision does come to pass, you wouldn't be able to leave it because someone with a hunting rifle would shoot you, right? Have you calculated how long your food, ammo, water would last? And what do you do about sanitation? Are you just going to poop in a garbage can? That sounds lovely. Or is your survival bunker hooked up to the sewer system? Have you figured the chances of you going insane living in paranoid isolation over long periods of time?

Tue, 07/12/2011 - 11:22 | 1447805 mayhem_korner
mayhem_korner's picture

RF is savvy enough not to answer your checklist of questions.  But for reference, check out some of the hard core types here...

Umbrellas are useful before it rains, ED.


Tue, 07/12/2011 - 12:36 | 1448058 Freddie
Freddie's picture

Have you figured the chances of you going insane living in paranoid isolation over long periods of time?

Sure beats watching TV which is all brainwashing of the sheep by the elites.


Tue, 07/12/2011 - 12:50 | 1448101 Rodent Freikorps
Rodent Freikorps's picture

I have enough dead tree books to last a lifetime.

Add in hunting, fishing, planting and harvesting, and I really don't think I'll be all that bored.

Tue, 07/12/2011 - 09:11 | 1447344 snowball777
snowball777's picture

Grab on with both's gonna be a growler!

Tue, 07/12/2011 - 08:46 | 1447277 BeerWhisperer
BeerWhisperer's picture

Ouch... That's going to leave a mark.

Tue, 07/12/2011 - 08:48 | 1447280 slaughterer
slaughterer's picture

Futures declined mildy on bad trade deficit, and now are up siginficantly.    It must be the Berlusconi reassurances coming through at about the same time...

Tue, 07/12/2011 - 09:04 | 1447323 SheepDog-One
SheepDog-One's picture

Futures 'up significantly' at -14 after yesterday -180? Im not so impressed with the retard futures myself, what is it 2005 all over again?

Tue, 07/12/2011 - 08:48 | 1447281 hedgeless_horseman
hedgeless_horseman's picture

Winning the future(s).

Tue, 07/12/2011 - 08:50 | 1447282 GeneMarchbanks
GeneMarchbanks's picture

There's a theme emerging here. Now let's see how the rest of today goes. Is that the smell of a Treasury auction burning? Or is it ES?

Tue, 07/12/2011 - 08:49 | 1447283 lizzy36
lizzy36's picture

Recession is good for the market now....right?

I haven't been this bullish since April of 2008.

Rally on!!!!

Tue, 07/12/2011 - 08:53 | 1447292 Cognitive Dissonance
Cognitive Dissonance's picture


The new worker monkey a la Linda Green. Where's Banzai7 when you need him?

Tue, 07/12/2011 - 09:28 | 1447424 I Got Worms
I Got Worms's picture

^^Looks like a 2010 law school grad.

Tue, 07/12/2011 - 09:30 | 1447434 Cognitive Dissonance
Cognitive Dissonance's picture

I wonder if he can pay back his student loans with three day old bread?

Just askin' 

Tue, 07/12/2011 - 10:09 | 1447531 MachoMan
MachoMan's picture

No, but he can go jack off at a nfp or government position and probably get them forgiven (on top of a mediocre salary, but probably no less than he would otherwise get starting out at a private firm)... of course, if he can't pay, then he can probably get a forebearance...  and by the time he gets a job that will allow him to repay them, the market will have cleared and there will be no reason for the government to hold his feet to the fire (since it won't be around in the same form and shape and will probably have a new outlook on the world).


Tue, 07/12/2011 - 12:01 | 1447940 Cognitive Dissonance
Cognitive Dissonance's picture

Are you jealous or angry?

Or both?

Tue, 07/12/2011 - 19:12 | 1449823 MachoMan
MachoMan's picture

I'm not angry with those who utilize the system to their pecuniary advantage...  I'm angry with those who change and grow the system to their pecuniary advantage...  and, no, I'm not jealous...  I'll take my position over needing a forebearance or having to waste my time at an nfp or government employer any day.  If my situation was different, I'd hit them up for a job, just the same...  but, thankfully, it's not.

Tue, 07/12/2011 - 08:51 | 1447288 Sudden Debt
Sudden Debt's picture

What was the GDP of the US again?

It must be hard these day to calculate a new debt ceiling compaired to GDP these days...


Tue, 07/12/2011 - 10:01 | 1447546 jerry_theking_lawler
jerry_theking_lawler's picture

ah ha SD,


therein lies the rub.....the US GDP number.

its all been a lie and all of the debt has been built on this number. therefore, from deductive reasoning, all the debt has been built on a lie.

the GDP calc is/has always been one of the main problems.

Tue, 07/12/2011 - 08:52 | 1447290 King Dong
King Dong's picture


Tue, 07/12/2011 - 08:52 | 1447291 Bohemian Clubber
Bohemian Clubber's picture

Everything is safe again now, don't worry sweetheart you can get back in the water

Tue, 07/12/2011 - 09:17 | 1447376 Harlequin001
Harlequin001's picture

but not near Japan...

Tue, 07/12/2011 - 08:54 | 1447294 Dick Darlington
Dick Darlington's picture

And surprise surprise, equities go nuts. Recessions are bullish! What a joke...

Tue, 07/12/2011 - 08:57 | 1447303 Cassandra Syndrome
Cassandra Syndrome's picture

Anytime now when apocalyptic movies are on such as "Deep Impact", "Armageddon", "28 Days Later", "Mad Max", "Knowing" etc, I sit there watching them thinking, I bet you the Dow was still rallying in those scenarios...

Tue, 07/12/2011 - 08:54 | 1447298 doomandbloom
doomandbloom's picture

smooth transition of power from US to China...

relax...or try to

Tue, 07/12/2011 - 08:55 | 1447302 BeerWhisperer
BeerWhisperer's picture


It's the end of the world as we know it. It's the end of the world as we know it. And I feel fine.......

Tue, 07/12/2011 - 08:58 | 1447304 Bartanist
Bartanist's picture

US and Western product companies are in a death spiral. Because of bank and government overhead (and to a lesser extent labor costs) they can no longer afford to manufacture in the US and they can no longer commit infrastructure building assets in the Western World.

Western companies have become renters of manufacturing instead of owners... The Chinese and other Asian companies are the landlords and simply rent manufacturing (and we will see more and more R&D, financing and Engineering rented as well) just as poor people who cannot afford a down payment on a house rent from a landlord, who accumulates the profit as well as builds equity.

As the situation continues and Western companies borrow more and more to support the drain of money to elitist executives and to China/Asia the Western/US companies will slide down the slope of becoming hollow shells until one day people wake up and discover that they are better off buying from the source directly and forgetting about Intel, Apple, GM, GE and other companies that sold out the US first by choice for greed and then as a means to maintain executive (banker and politician) lifestyle at the expense of everyone else.

Swirley anyone?

Tue, 07/12/2011 - 09:13 | 1447353 WoodMizer
WoodMizer's picture

The arguement of late seems to be between those who predict financial armageddon in the near-term, and those who see it coming in the mid-term.

I am new to the site and I don't want to seem jaded, but older threads have predicted the collapse before.

With complete sincerity and interest, I would like to ask the ZH community what the odds are of collapse by October 1st?

Collapse defined as 70% to 80% loss on equities.

Tue, 07/12/2011 - 09:18 | 1447379 SheepDog-One
SheepDog-One's picture

The 'collapse' already happened a few years ago, just been papered over with trillions printed out of thin air while illusionists keep up their daily act.

Tue, 07/12/2011 - 09:23 | 1447398 WoodMizer
WoodMizer's picture

Follow up question:

Do you think the surge in oil prices caused the collapse of 2008, or was it a sign of fractional banking leverage?

Put more simply was peak oil the tipping point?

Tue, 07/12/2011 - 09:29 | 1447425 Harlequin001
Harlequin001's picture

Just a quick one WoodMizer, how do you know about old threads if you are new to the site?

Tue, 07/12/2011 - 09:34 | 1447451 WoodMizer
WoodMizer's picture

I will admit I lurked since 2008; I was Laid off as a shop foreman in a cabinet shop, when real estate was kneecapped.  I have spent most of my down time since 2008 taking a crash course in Austrian school econ.  I became a member of the ZH community because I wanted to be able to ask some rather simple questions of an educated group.

Tue, 07/12/2011 - 10:33 | 1447618 MachoMan
MachoMan's picture

Expensive oil and many other events are not the cause per se, so much as the straws that broke the camel's back so to speak...  for example, a resilient populace (with savings) could have better withstood expensive oil and other increases in the cost of living.  In many respects, these issues are more accurately described as symptoms of cheap credit/devaluation of our currency...  (obviously at some point purchasable oil runs out, but it didn't in 2008 and this wasn't the predominant issue).

The real issues are decades of offshoring combined with a desperate attempt to paper over the problem and then an even more desperate attempt to create financial instruments and means to stuff a bandaid on the failed paper-over...  the expansion of the size and scope of governments at all levels being a glaring example (picking up the slack of the private sector)...  and their capture by those hell bent on ensuring the rest of us have to bow before breathing.  Ultimately, this has created a hole so big even god could not fill it (especially when "he" doesn't exist) and we are impotent to collectively deal with the problem, given the respective position of stakeholders and our form of government.  Like virtually all personal deleveraging to date, the only way we'll collectively deleverage is if forced.

In short, I think you might say that the boom post WW2 was more of a transitionary event than fixture...  and eventually wage arbitrage won't have such an easy time...  but until that day, we're going to experience decreases to our standard of living.  And there is no end in sight...  [even if the system resets...  even if we adopt stronger money principles...  we have to come to grips with the world economy and structural unemployment, unless of course a few billion people die off...  (which is the desire of some...  assholes)].

PS, don't worry about timing the market...  it's a fool's errand and odds are you'll be wrong...  and being wrong, even by a little, can bite you.  Convert your currency out of the ether and convert to the new currency regime once it fires up...  just remember, some assets depreciate more quickly and/or have less utility than others. 

Tue, 07/12/2011 - 11:28 | 1447816 Marco
Marco's picture

Why do we need unemployment? If we don't let people starve we have to spend money on them, or in other words wealth redistribution ... if we're being socialist why not create non oil consuming service jobs for them or spread the work around more? (Shorter working hours.)

Tue, 07/12/2011 - 18:05 | 1449662 WoodMizer
WoodMizer's picture

Thanks for offering your synopsis.

Are you saying that since WW2 the industrialized world has been living beyond their means?


Tue, 07/12/2011 - 19:18 | 1449833 MachoMan
MachoMan's picture

I'm saying america certainly has...  but, if truth be told, the event horizon was probably long before that...  there are fundamental aspects of our lives that will never be sustainable, despite however cleverly they may be disguised due to rampant credit, currency devaluation, or demographic factors...  people see wage arbitrage as some sinister plot...  I just see it as the unveiling of unsustainability.  [as trav points out, the sinister plot is more told in what is done with the residual from utilizing wage arbitrage, e.g. bonuses for the top].

Tue, 07/12/2011 - 09:36 | 1447459 WoodMizer
WoodMizer's picture

I will admit I lurked since 2008; I was Laid off as a shop foreman in a cabinet shop, when real estate was kneecapped.  I have spent most of my down time since 2008 taking a crash course in Austrian school econ.  I became a member of the ZH community because I wanted to be able to ask some rather simple questions of an educated group.

Tue, 07/12/2011 - 09:37 | 1447461 WoodMizer
WoodMizer's picture

I will admit I lurked since 2008; I was Laid off as a shop foreman in a cabinet shop, when real estate was kneecapped.  I have spent most of my down time since 2008 taking a crash course in Austrian school econ.  I became a member of the ZH community because I wanted to be able to ask some rather simple questions of an educated group.

Tue, 07/12/2011 - 10:02 | 1447548 jerry_theking_lawler
jerry_theking_lawler's picture

you can say that again...

Tue, 07/12/2011 - 10:03 | 1447549 jerry_theking_lawler
jerry_theking_lawler's picture

oh, you did.

Tue, 07/12/2011 - 10:09 | 1447566 augie
augie's picture

Good for you in taking an active interest in the systemic causes of your unfortunate loss of employment. If everyone who was affected by the 08' collapse maintained a similar character to yours, i would contend we would be in a much better place right now.

Tue, 07/12/2011 - 10:19 | 1447589 WoodMizer
WoodMizer's picture

Thanks for the support.

One of the most challenging problems I face is convincing the older members of my family (60 and over), to diversify into PMs.

I graduated in 2006 with a BS in Biology, as a result my family considers me ignorant concerning macro economics.


I want to spread the ZH message, but the masses lack the prerequisites for understanding the importance of ZH articles.

Tue, 07/12/2011 - 10:46 | 1447662 MachoMan
MachoMan's picture

Don't have such a contempuous view of the "masses"...  everyone is perfectly capable of understanding virtually all the major issues...  I'll posit that we're incentivized, whether extrinsically or intrinsically, to ignore the issues and/or create an alternate reality.  The trick to getting them to see the light so to speak is to break through the protective barriers...  and stay after them... 

Tue, 07/12/2011 - 10:53 | 1447683 Hugh_Jorgan
Hugh_Jorgan's picture

You got that right.

I call it "trying to have a 5th floor conversation with someone who is too lazy walk up beyond the 2nd floor."

Don't waste your time. If you care about them them, then prep enough for them as well as yourself. Otherwise, just let them go if they won't listen.

Tue, 07/12/2011 - 11:20 | 1447801 ElvisDog
ElvisDog's picture

In my opinion, the collapse of 2008 was caused by the fact that our economic system relies on an ever increasing level of debt and leverage and (before the government jumped in with both feet) in 2008 private sector debt reached saturation. The collapse itself was caused by a panic reaction to that realization. Basically, the players realized the Titanic had hit an iceberg and rushed for the lifeboats all together.

Tue, 07/12/2011 - 09:19 | 1447383 Harlequin001
Harlequin001's picture

Without 3 trillion in brand new dollars, not to mention Euro's, Pounds and Yen, it did collapse.


Tue, 07/12/2011 - 09:49 | 1447495 Silver Dreamer
Silver Dreamer's picture

TPTB have kept the ponzi scheme going this long.  What's a few more months then?  Prepare for the day your money buys nothing.

Tue, 07/12/2011 - 08:58 | 1447307 slaughterer
slaughterer's picture

The algos are pushing the futures up to get a better ask on the open of the regular market, or somebody has a private relation with LaGarde and just got some inside info on Greece and Italy, today's toxic twins. 

Tue, 07/12/2011 - 09:10 | 1447340 SheepDog-One
SheepDog-One's picture

I wouldnt bet on it myself, but throw down your chips have fun.

Tue, 07/12/2011 - 09:00 | 1447310 monopoly
monopoly's picture

Trading this market day to day is for the chronically ill person. Down, up, down. Just sitting here with my stash and miners.

Tue, 07/12/2011 - 10:20 | 1447594 snowball777
snowball777's picture

Fuck paper.

Tue, 07/12/2011 - 09:03 | 1447311 Franken_Stein
Franken_Stein's picture


I don't want to spoil your party.




What about the nuclear power plant at Fort Calhoun that is currently under water ?!

There is rumour about a meltdown.

A no-fly zone has been put in place as well as a total news ban.



Tue, 07/12/2011 - 09:07 | 1447331 SheepDog-One
SheepDog-One's picture

Oh Franken nevermind all that, what are you busting out of the Matrix or something? Only thing that matters is STOCKS, and BTW have you eaten your peas yet?

Tue, 07/12/2011 - 09:16 | 1447365 sabra1
sabra1's picture

what about japan, the mideast, pakistan etc. news stations are handed what news to report on, no investigative news allowed. what you do not hear, does not exist!

Tue, 07/12/2011 - 09:23 | 1447399 earnulf
earnulf's picture

....ravenous bugblatter beast of Troth, which assumes that if you can't see it, it can't see you

Hitchhikers guide.

Tue, 07/12/2011 - 09:51 | 1447507 Silver Dreamer
Silver Dreamer's picture

The axiom that the news you are not told is often what is most important remains true.  What is the "news," as you are provided it, after all?

Tue, 07/12/2011 - 09:50 | 1447498 Coast Watcher
Coast Watcher's picture

Geez, Frank, time to stop flogging that horse. A new barrier has already been installed around the plant and they're pumping it dry as we speak.

My wife is currently in Omaha, and the news this weekend had new video of the plant showing all the important areas are dry and safe and have been all along. No meltdown since the pumps for the spent fuel pool are still working and the reactor core itself has been shut down for months for refueling.

Tue, 07/12/2011 - 11:01 | 1447715 Hugh_Jorgan
Hugh_Jorgan's picture

The plant was already in cold-layup since April, well before the floods hit. They are good to go.


A VERY different scenario than Japan who was running high and hot when the quake happened. Controlling the reactor immediatley after a scram without electrical is a guaranteed disaster if you have no sustainable emergency means of removing heat. This is why they suffered meltdowns.

Tue, 07/12/2011 - 09:01 | 1447313 djsmps
djsmps's picture

After looking at the futures, I had a vision of a couple of guys high-fiving it yelling, "Excellent. Highest in three years!"

Tue, 07/12/2011 - 09:03 | 1447322 Caviar Emptor
Caviar Emptor's picture

Naz was already at all-time record highs two months ago. People keep forgetting 

Tue, 07/12/2011 - 09:02 | 1447316 Caviar Emptor
Caviar Emptor's picture

NYSE data from last quarter shows trading volume is 75% 'program trading' (Bots), 15% daytraders and only 10% 'investors'. That's a tell. It means that market valuation is a reflection of Fed liquidity provided to Wall Street, not a reflection of the economy or the health of corporate America. US economy is still over-financialized and that vicious cycle will continue to feed on itself.

Tue, 07/12/2011 - 09:02 | 1447320 spanish inquisition
spanish inquisition's picture

Did we actually import an extra $50B in goods or was it the same amount that just costs more?

Tue, 07/12/2011 - 09:11 | 1447342 Caviar Emptor
Caviar Emptor's picture

It's all measured in dollars, not dry weight. 

The trade gap jumped 15% compared with April. Exports shrank and imports grew in terms of dollars. Clearly we're getting less at higher prices

Tue, 07/12/2011 - 09:15 | 1447359 SheepDog-One
SheepDog-One's picture

What 'goods'? What do we make and export anymore?

Tue, 07/12/2011 - 09:24 | 1447397 Harlequin001
Harlequin001's picture

9 mil, 7.62... and a few cars I think...

but maybe they're made in China...


Tue, 07/12/2011 - 10:45 | 1447660 Transformer
Transformer's picture


Tue, 07/12/2011 - 10:46 | 1447663 Transformer
Transformer's picture

Armaments, ordinance

Tue, 07/12/2011 - 09:54 | 1447516 Silver Dreamer
Silver Dreamer's picture


Tue, 07/12/2011 - 10:03 | 1447552 poor fella
poor fella's picture

One plane and a shitload of soybeans. Work at the soybean factory has really picked up!

Tue, 07/12/2011 - 10:06 | 1447557 Harlequin001
Harlequin001's picture

Coca Cola...

or is that made in China too?

Tue, 07/12/2011 - 12:31 | 1448040 Zero Govt
Zero Govt's picture

and airfreight pallets of US Dollars to keep all those corrupt despots and US puppet Govts propped up abroad ..."bringing democracy to the world" ...just great wholesome stuff

Tue, 07/12/2011 - 09:05 | 1447325 monopoly
monopoly's picture

I cannot believe that the brainless executives of the idiot channel allow Cramer on before lunch. He is so obnoxious, so clueless as to make me go to Bloomberg and Betty. I stopped watching this channel over 2 years ago except for the morning Santelli and Mark Haines, now that Mark is gone :(, with Cramer on it is just impossible to watch except on mute.

What a waste. Who the hell is in charge of this fraud.

Tue, 07/12/2011 - 09:05 | 1447326 monopoly
monopoly's picture

Looks like a good day to do nothing.

Tue, 07/12/2011 - 09:09 | 1447335 SheepDog-One
SheepDog-One's picture

Equity markets are now just a Treasury full-retard game....never trade full-retard.

Tue, 07/12/2011 - 09:09 | 1447336 RobotTrader
RobotTrader's picture

High flyers like NFLX, AAPL, etc. are green this morning as they are trying to U-turn stocks to burn the late shorts.

Meanwhile, silver continues to get smashed, but now it is being dragged up kicking and screaming with the bounce in ES.

Tue, 07/12/2011 - 09:15 | 1447355 SheepDog-One
SheepDog-One's picture

Gentleman Jim sending Momo a blood puke bucket.

Tue, 07/12/2011 - 09:23 | 1447400 lieutenantjohnchard
lieutenantjohnchard's picture

meanwhile, as the robotard likes to bray, std continues to get smashed. std, for those who care, was the 'tard's number one pick from december 2010. it's down 20%.

Tue, 07/12/2011 - 09:12 | 1447348 Stuck on Zero
Stuck on Zero's picture

You can bet that U.S. manufacturers who haven't already moved to China are rushing there now.  They want to get in before the Renminbi skyrockets against the dollar.

Tue, 07/12/2011 - 09:16 | 1447369 Quinvarius
Quinvarius's picture

we must have run out of gold to export.




Tue, 07/12/2011 - 09:16 | 1447370 John Law Lives
John Law Lives's picture

Massive monthly trade deficits...

Massive annual budget deficits...

Massive federal debt level...

Massive outsourcing of American jobs and downward pressure on wages...

Massive debasement of US dollar through money printing...

Great job, elites!  The experiment has failed.

Tue, 07/12/2011 - 09:31 | 1447436 Ricky Bobby
Ricky Bobby's picture


Tue, 07/12/2011 - 09:56 | 1447528 Silver Dreamer
Silver Dreamer's picture

Failed? I would wager that many elites would argue their plans have succeeded smashingly well.

Tue, 07/12/2011 - 10:49 | 1447675 John Law Lives
John Law Lives's picture

Their experiment failed the people.  I don't care what elites would argue.  I am not one of them, and I am not served by them.

Tue, 07/12/2011 - 12:37 | 1448059 Zero Govt
Zero Govt's picture

not served by them but sure sucked dry by them

they've gone from robbing their banks to robbing the country.. pretty near complete i'd say

Tue, 07/12/2011 - 09:17 | 1447373 BeerWhisperer
BeerWhisperer's picture


Any good short sells to input today?

Tue, 07/12/2011 - 09:19 | 1447382 Silverhog
Silverhog's picture

Isn't this what the Feds want? Public spending money they don't have on imported shit. Dow thinks it smells like  recovery. More like an open manhole cover too a cesspool. Back to the party everyone.  

Tue, 07/12/2011 - 09:19 | 1447385 PaperBear
PaperBear's picture

That chart is really good as it shows that the import-export gap is getting wider while both imports and exports are increasing.

How about a chart showing the import-export gap as a percentage of exports ?

Tue, 07/12/2011 - 12:43 | 1448075 Zero Govt
Zero Govt's picture

proving once again the lie that is a tanking currency "helps exports"

it's more obvious that a country who has a negative trade imbalance and imports more goods than it exports is going to suffer even more if imported goods cost more 

no worries, Obumma has promised to double exports over the next 5 years.. maybe the peanut brained Press can ask the President of Shams how this throw-away trigger line is doing?

Tue, 07/12/2011 - 12:45 | 1448076 Zero Govt
Zero Govt's picture

dub' post ...3rd today, Dejavue Virus Alert!

Tue, 07/12/2011 - 09:20 | 1447386 overmedicatedun...
overmedicatedundersexed's picture

tariffs tariffs tariffs if washington had not sold out to the CFR and big banks who could care less about jobs in USA. visas to the moon, illegal immigration, all on fire but to do something would insult the elite scum who run this place. lay offs will continue until a real American patriot gets into office and puts an end to the free trade suicide pack.

Tue, 07/12/2011 - 09:23 | 1447396 Caviar Emptor
Caviar Emptor's picture

Today is a perfect snapshot of the US circa 2011:


Market (and Wall Street) right under all time records just set this spring.

Main Street languishing badly and sinking into the quicksand as GDP sours, inflation creeps up, unemployment swells and housing is not recovering. 


Tue, 07/12/2011 - 09:24 | 1447405 km4
km4's picture

No worries Ben can just can just print more $ and without inflation. We just need countries and investors to continue to lend us $100 Billion every month ( and perhaps $150 Billion a month soon ) and everything will be just fine ;)

Tue, 07/12/2011 - 09:27 | 1447417 overmedicatedun...
overmedicatedundersexed's picture

km4 they will for it keeps their people employeed..they go stronger we fall lower

revolutions were made of less. one day the bill will come due.

Tue, 07/12/2011 - 10:29 | 1447610 Marco
Marco's picture

They have been doing it for over 3 decades ... sure the twin deficits are unsustainable, but they have always been unsustainable. There's nothing particularly special about the current situation which can't be helped by piling on more debt faster. As long as China and the oil producing countries are willing to lend the charade can keep going ...


The problem is the debt has always been piled on the middle/lower classes, and they're getting kinda sick of debt. Without them the only way to keep the game going is to pile some debt on the upper classes as well. Which is the one thing government doesn't want to do, piling on future debt obligations on the poor to keep the status quo going is one thing ... but the rich need their money, they are preparing for the collapse after all.


This is why social security cuts are now on the table ... wealth distribution from future poor to current poor to drive overconsumption ... perfect way to sustain the status quo a little longer.

Tue, 07/12/2011 - 09:25 | 1447409 JJSF
JJSF's picture

And chances very high that S&P will close up today..

Tue, 07/12/2011 - 09:43 | 1447478 km4
km4's picture

I think Barry needs to do another press conference and tell us to eat our peas so we can improve our trade deficit

Tue, 07/12/2011 - 09:53 | 1447511 Sven Sikztu
Sven Sikztu's picture

Peas be upon you, POSOTUS.


Another day to explore copper jacketed futures.

Tue, 07/12/2011 - 09:54 | 1447517 steve from virginia
steve from virginia's picture

All Chinese imports are coal/oil in other forms.

Add the Chinese imports to the crude imports and the guzzling beat goes on.

Now the analysts are cryin' b/c of the trade deficit. But we can't shrink in w/o cutting back on the guzzling.

What does the US export? Food commodities (oil and gas), airplanes (oil-gas, waste enablers),  autos (oil- gas, waste enabler), some energy commodities such as diesel, coal (US runs a net energy deficit) ...

We re-export what we import! No matter what, the US chases its tail, beating itself over the head with a hammer then whining about the headache. Yes, indeed, we will bankrupt ourselves with our trade deficit. The trade deficit is just the indicator on the US 'bankruptcy gauge'.

Difference between July 12, 2011 and July 12, 1999 is that we can now see the light at the end of the energy tunnel, the train heading straight toward us with nowhere for us to run.

I hope you enjoyed your drive to work this morning ...

Tue, 07/12/2011 - 10:00 | 1447543 Sven Sikztu
Sven Sikztu's picture

a lifting of the self-imposed domestic energy self-sufficiency ban could change this overnight. Let's hope Salazar plays in traffic while very drunk soon.

Tue, 07/12/2011 - 11:04 | 1447734 Marco
Marco's picture

Assuming the US could switch to full domestic production right now, how long would Alaskan oil reserves last?

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