US Trade Deficit Deteriorates As US Import Price Index Surges By Most Since June 2009

Tyler Durden's picture

Another month, and another confirmation that the US export segment is non-existent. In February the US posted a $45.8 billion trade deficit compared to $47 billion in January, but worse than expectations of $44 billion. Importing our way to prosperity and #Winning_the_Future continues. Comparing the Chinese reported trade surplus with the US and the US reported trade deficit with China we get just a 100%+ difference: $7.8 billion versus $18.8 billion. Gotta love two administrations that just make up numbers trying to reconcile their fraud. This number also means that Q1 GDP will see another major revision lower. And so will Q2, Q3 and so forth, leading to QE3. And while we are at it, let's just make it stagflation: the US import price index surged from 1.4% to 2.7% on expectations of 2.1%: the largest rise since June 2009.

From the report:

Goods and Services

  • Exports decreased to $165.1 billion in February from $167.5
    billion in January. Goods were $118.0 billion in February, down from
    $120.4 billion in January, and services were $47.2 billion in
    February, up from $47.1 billion in January.
  • Imports decreased to $210.9 billion in February from
    $214.5 billion in January. Goods were $177.3 billion in February,
    down from $180.7 billion in January, and services were $33.6 billion in
    February, down from $33.8 billion in January.
  • For goods, the deficit was $59.3 billion in February, down
    from $60.3 billion in January. For services, the surplus was $13.6
    billion, up from $13.3 billion in January.

Goods by Category (Census basis)

  • The January to February decrease in exports of goods
    reflected decreases in automotive vehicles, parts, and engines ($1.0
    billion); industrial supplies and materials ($0.6 billion); other
    goods ($0.5 billion); capital goods ($0.3 billion); consumer goods ($0.2
    billion); and foods, feeds, and beverages ($0.2 billion).
  • The January to February decrease in imports of goods
    reflected decreases in automotive vehicles, parts and engines ($2.3
    billion); capital goods ($2.1 billion); industrial supplies and
    materials ($1.4 billion); and other goods ($0.1 billion). Increases
    occurred in consumer goods ($2.3 billion) and foods, feeds, and
    beverages ($0.1 billion).

Services by Category

  • Exports of services were virtually unchanged from January to
    February. An increase in other private services ($0.1 billion), which
    includes items such as business, professional, and technical services,
    insurance services, and financial services, was partly offset by a
    decrease in other transportation ($0.1 billion), which includes freight
    and port services. Changes in the other categories of services exports
    were small.
  • The January to February decrease in imports of services was
    more than accounted for by decreases in other transportation ($0.2
    billion) and travel ($0.1 billion). An increase in other private
    services ($0.1 billion) was partly offsetting. Changes in the other
    categories of services imports were small.

Goods by Geographic Area (Not Seasonally Adjusted)

  • The goods deficit with China decreased from $23.3 billion in
    January to $18.8 billion in February. Exports increased $0.4 billion
    (primarily passenger cars, soybeans, and steelmaking materials) to $8.4
    billion, while imports decreased $4.1 billion (primarily computers and
    accessories; toys, games, and sporting goods; and electric apparatus) to
    $27.3 billion.
  • The goods deficit with the European Union increased from
    $5.6 billion in January to $6.9 billion in February. Exports decreased
    $0.3 billion (primarily nonmonetary gold; soybeans; and artwork,
    antiques and stamps) to $20.0 billion, while imports increased $1.1
    billion (primarily pharmaceutical preparations, civilian aircraft, and
    household goods) to $26.9 billion.
  • The goods deficit with the Japan increased from $5.0
    billion in January to $5.2 billion in February. Exports increased $0.3
    billion (primarily metallurgical grade coal; civilian aircraft, engines,
    equipment, and parts; and corn) to $5.3 billion, while imports
    increased $0.6 billion (primarily automotive parts and accessories,
    computer accessories, and motorcycles and parts) to $10.5 billion.

Full report

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aVian's picture

dollar just took a huge dump...hope you folks bought the silver dip

cossack55's picture

So how much of the $73 billion that Billy had in his pocket just disappeared?

Larry Darrell's picture

So, how far underwater (already) is yesterday afternoon's $1 million dollar bet against silver?

Weisbrot's picture

as of 10:10am in NY it seems just fine

oogs66's picture

I'm sure the Fed speakers won't let pesky details like facts stop them from explaining how there is no inflation.

Translational Lift's picture

Just wait until all that GREEN manufacturing kicks in..................

Bunch of dumbfucks.................

alien-IQ's picture

and the $DXY goes spelunking to new lows....

topcallingtroll's picture

Yeah i was.hoping for just a couple of weeks of strength

franzpick's picture

US exports of empty containers at record high.

John Law Lives's picture

The US has run a net trade deficit in total goods + services (combined) every single month since January of 1992:

Every single month with no exceptions.

Free Trade = Yet another brilliant idea brought to you by the elites


IBelieveInMagic's picture

Isn't it by design? Isn't the plan to contribute little and take out a lot from global trade? For example, till recently our town schools would leave lights on in all rooms all-night, (school lights blazing away, a real shining beacon on the hill) -- tells you what we think of the "real" cost of energy!

John Law Lives's picture

Exporting jobs along with our manufacturing base is a bad design.

IBelieveInMagic's picture

In my view, it was net gain to our economy but led to severe undervaluing of real resources and to severe misuse of these resources. Now those resources are gone, we are faced with bleaker future earlier than if we had judiciously used those resources -- but the reasoning our strategic thinkers in power have probably applied is that if we don't consume it, someone would -- so might as well consume it.  

John Law Lives's picture

<<<  In my view, it was net gain to our economy  >>>

In your opinion, a cumulative $6+ Trillion trade deficit over the past 19 years was a net gain to our economy?

You must really believe in magic... and the Tooth Fairy... and Santa...

IBelieveInMagic's picture

It's just paper for "real" stuff! I will take real stuff any day over paper that our magic banker can create at will.

John Law Lives's picture

I suppose the 3+ million manufacturing jobs that left America don't matter...

IBelieveInMagic's picture

You win some, you lose some. They get 99 weeks and SNAP for life! But, gas is relatively cheap (compared to the rest of the world) for most of us to tool around in our F150s!

John Law Lives's picture

Strange line of reasoning...

Perpetual monthly trade deficits in the tens of billions per month will bleed America.

IBelieveInMagic's picture

Now I see the flaw in your reasoning -- you are worried about the future. But the system is saying "Don't worry, be happy" - live for the day, consume. GWB said it, Obama is urging us to do as well -- our role in world trade is to be good consumers! Who can see into the future and wonder what will happen if and when we run out of essential resources. The USD is allowing us to enjoy the here and now, so enjoy!

John Law Lives's picture

GWB and Obama are clueless, and neither were qualified to be POTUS (imo).  I hope America can find a leader, though my expectations are low because the two-party system has a stranglehold on the process.  I believe Ron Paul is competent and has integrity, but I am equally sure he has zero chance of being POTUS.

overmedicatedundersexed's picture

japan will save our economy..exports of food and lead clothes will soar.along with citi opening new branches to finance construction with 0 down loans.

SheepDog-One's picture

Like in England, you can only raise prices so much on broke unemployed people before sales drop off, just Hood Econ 101.

Sudden Debt's picture

You're never to broke.

I'll give you one ounce of silver for your kidney!

I want to cook something special for my dog.



Trying to Understand's picture

You were junked!!  How short sighted!!  My nephew, father of 3, has been on and off 'the dole' since 2008.  In sheer desparation he recently sold a testicle.

Sudden Debt's picture

who buys that?

Is that even legal?


StychoKiller's picture

Why not both?  Is he planning on having more children he will struggle to feed in the future??

Larry Darrell's picture

Hood Econ 101


The frightening thing is sales dropping is only the first hit to the bottom line.

When the people start robbing / stealing / and committing property damage the profitability looks even worse.

SheepDog-One's picture

YEA when the neighborhood economy revolves around who's got the most ammo, then its real interesting times!

Sudden Debt's picture

So the US deficit grows constantly...

The trade deficit grows constantly...

Inflation grows constantly...




You fill a QE canon with 100$ bills and blast a canon ball from the canon. Whatever money makes it in 1 piece get's to go to the real economy and produce GREEN SHOOTS!!!



gordengeko's picture

The shitty part is that the goal is the destruction of the dollar and the US to remove it as the global reserve currency and institute a new global regime (financially, think British Empire), so for the good americans that actually give a shit that know this are shorting and hedging against the US because they have to if they want to protect their future further exacerbating the problem.  While the majority that are asleep have no idea what the fuck is going on. 

SheepDog-One's picture

Thats right, and it appears theyre pretty close to go-time.

gordengeko's picture

Actually should have said, to protect their FALSE sense of security because it will not be a good thing.

spartan117's picture

We need to export some more of those Chevy Cruzes!

willien1derland's picture

LOL +100 - with the 'detachable' steering wheel feature at NO extra charge

Larry Darrell's picture

The fucking asshat on our local "news" radio station mentioned this story this morning.........and then he ended it by saying (paraphrased, but I shit you not he actually said)

"Not to worry though if you own a new Cruze.  This problem was only with 1 car in which the incorrect steering wheel was put on at first"

He made NO MENTION of the fact that they KNOW FOR A FACT that there were a couple of thousand where the steering wheels were swapped in this manner as reported here on ZH yesterday.

SheepDog-One's picture

Sick. Even local reporters are in the Gestapo now, carrying the water for Der Furher.

overmedicatedundersexed's picture

Near the end of the segment, Burnett remarked that the United States is "...a very wealthy country. If you look at our assets, we could pay down the debt tomorrow. We choose to borrow because we can borrow at incredibly low interest rates." By "assets," Burnett seemed to be referring to the income of all Americans (unless she plans to auction off the Statue of Liberty to pay our bills).

so many women in positions that were once held by men ..look how much better things are working..

topcallingtroll's picture

The usa becoming more export oriented will require getting rid of socialist type regulations and redistribution policies which increase cost of capital and decrease incentive to work.

SheepDog-One's picture

WTF do we 'export' except debt and jobs? We dont even manufacture underwear here anymore.

the not so mighty maximiza's picture

Any policy that encourages laziness should be outlawed, any one proposing such policies should be arrested.

SheepDog-One's picture

Gold and silver have regained all their drop off and then some, USD 74.6, DOW down 60...enjoy.

overmedicatedundersexed's picture

fwiw: large movement of tank units to Afgan in next 12 months..will it be Iran or Paki that gets nailed or both??

this from one who got his orders to get ready ..

Obuma the man of peace..gotta laugh at the sick fuc* in the white house.

SheepDog-One's picture

Bigger war monger than Hitler in my opinion.

Alcoholic Native American's picture

Fort Benning just built a whole new tank division. Are they really shipping those things?

Coast Watcher's picture

"will it be Iran or Paki that gets nailed or both??"


Just in time for the (presidential) campaign season. "You gotta reelect me, I'm a waaaaarrrrr president."

overmedicatedundersexed's picture

if congress lets this illegal president start another war or expand it yet again they should all be hung on lamp posts how much more blood and treasure will they spill??

tank units into afgan makes no sense unless you are planning something much larger ten years of this war and no rioting in the streets the left has gone awol.

Printfaster's picture

tank units into afgan makes no sense

Unless you think Pakistan will become unhinged.  Frankly, I would have thought that the rough types in Pak would have set off a few firecrackers just to see what they would do.