This page has been archived and commenting is disabled.
US Trade Deficit Surges To $46.3 Billion On Expectations Of $41.5 Billion: Downard GDP Revisions Coming
And another piece of bad news for both the US economy and US exporters in particular, even despite prevailing dollar weakness over the past several months: the January US trade deficit printed at $46.3 billion, on imports of $214.1 billion ($10.5 billion higher M/M) and exports of $167.7 billion ($4.4 billion higher). This was the worst number since August 2010. The December deficit was revised to $40.3 billion from $40.6 billion. The December to January increase in imports of goods reflected increases in industrial supplies and materials ($4.4 billion); automotive vehicles, parts, and engines ($2.7 billion); capital goods ($2.1 billion); consumer goods ($0.9 billion); and foods, feeds, and beverages ($0.5 billion). A decrease occurred in other goods ($0.6 billion). The December to January increase in exports of goods reflected increases in industrial supplies and materials ($3.7 billion); automotive vehicles, parts, and engines ($1.3 billion); and foods, feeds, and beverages ($0.1 billion). Decreases occurred in consumer goods ($0.6 billion); capital goods ($0.4 billion); and other goods ($0.3 billion). And unfortunately for Wall Street, few are importing US financial innovation any more: "Services exports increased $0.5 billion from December to January." So how much lower does the dollar have to plunge before someone actually starts importing US goods? Due to notable weighting of trade data in GDP calculations, look for another round of downward GDP revisions. The Goldman spin is becoming increasingly difficult at this point. Next up: Hatzius on the Dudley hotline asking for instructions?
Finally, an amusing discrepancy: according to the US, the January trade deficit with China was $23.3 billion. According to China, the trade surplus with the US in January was $13.6. Just 100% off between two departments of truth.
Full report - link.
»
- 4455 reads
- Printer-friendly version
- Send to friend
- advertisements -
damn they are good, UE bad, trade bad, building a case for QE3 should not be this easy
um, where is the category for oil?
female-dogs-in-heat
http://www.calculatedriskblog.com/
has a chart up, here is an excerpt
Good Lord, who would want OUR financial innovation. what a joke
Not sure, yet all those American made Apple iPads must be helping the USA economy. Oh, wait, McCain had it wrong as the Apple iPad is made in China. Ooops!
Are we supposed to BTFD? I'm confused.
Mike Pettis •
In other words, the exchange rate appreciation after 2005 may very well have caused a relative improvement in the trade balance between the two countries, but the widening differential between wages and productivity and, more importantly, the reduction in real interest rates and the forced expansion of credit would have had the opposite effect.
This is only partly true. In fact trade almost never settles bilaterally. It settles multilaterally. It doesn’t matter whether or not China and the US produce the same thing for currency appreciation to have an affect on the two countries’ trade balances.
So even if Wu is right in saying that a revaluation of the renminbi would directly reduce Chinese exports to the US without directly stimulating production in the US, so what? If Americans weren’t producing what China used to sell, that just means that the US purchased those products from another country, let’s say Mexico.
http://mpettis.com/2011/02/currency-manipulation/
Imports were the highest since August 2008, reflecting a jump in oil prices and purchases of business equipment and consumer goods that may be sustained as the world’s largest economy expands. Exports of American-made goods are getting a boost from the weaker dollar and growth in Asia and Latin America, benefiting companies like Deere & Co. (DE)
“There’s no doubt the trade deficit will continue to widen through the quarter,” said Chris Low, chief economist at FTN Financial in New York. “The big increase in oil prices could cause some temporary pain. Companies are betting that demand will continue to be strong this year,” which will fuel gains in non- oil imports, he said.
http://www.bloomberg.com/news/2011-03-10/trade-deficit-in-u-s-widened-mo...
MEXICO CITY, March 9 (Reuters) - Mexican automobile production rose by double digits in February, while exports also climbed in a sign of continued health for the key manufacturing sector.
http://www.reuters.com/article/2011/03/09/mexico-economy-autos-idUSN0926...
"Are we supposed to BTFD?" YES, in GOLD and SILVER dummy!<ng>
I guess the /sarc flag is now mandatory....
Trade War ...v/s China
So this should be tremendously Pm bullish, no?
Actually no, or yes. Reality has disconnected from our reality.
Incidentally, China and the US are 33rd parallel countries. Two fatties on the opposite ends of this round.
Who will jump off the see-saw first?
ORI
http://aadivaahan.wordpress.com/2011/03/09/axis-of-evil-doing/
Must be because Argentinia has banned Barby dolls to be sold any longuer!
Actually China is a lot like us..they import most of their oil...where we differ is that they also import commodities..and manufacture things with them ..then export them......we just keep them....I just read John Deere is doubling the size of their manufacturing plant.........where...In Russia.....I am from Waterloo Iowa where they have several big plants....but the UAW is there too....and Volero is buying a refiner off site also...can´t build or expand here...
Nothing to see here...
Recovery is moving along nicely....
All you need to know is that this is a GREAT opportunity to BTFD!
Seriously...Who here really thinks that the U.S. will ever achieve equilibrium in trade with the rest of the world...
All we seem to be able to make or export these days is debt...and creative "investment vehicles" that are designed to screw un-suspecting people out of their FRN's.
Serously...Is ANYONE really surprised that our trade dececit is growing? Weak dollar or not....the fact remains that we don't really make shit here anymore.
Look at the stuff you buy on a day to day basis....and check the little sticker on the bottom / side...where was it made?
Until we as Americans realize that it is NOT our RIGHT to be able to buy mountains of cheap, disposable crap at the local Wall-Fucks - Then we are going to have trade defecits. It is pretty simple.
"Until we as Americans realize that it is NOT our RIGHT to be able to buy mountains of cheap, disposable crap at the local Wall-Fucks - Then we are going to have trade defecits. It is pretty simple."
What sadly is becoming the typical comment of brilliant (just being sarcastic) commenters here lately.
Negative, douchey, plenty of Amuricons realize this, and the only one shopping there are repub-CONS, sweetie.
THEY have relocated the production assets offshore. THEY have relocated the capital assets offshore.
We Amuricons had little to do with that, sweetums.
I realize thinking is soooooo hard, but give it a shot sometime.
Speaking of "simple" where do you ever get those simpleton talking points from?
Anyone care to venture a guess?
I guess you can't export annuities, derivatives, and other bullshit financial products?
But they already did Johnny. Only, now everyone knows they are toxic.
ORI
Say, Johnny Lawrence, any chance you are related to Shock and Awed?
As of 1999, America became a NET IMPORTER of high tech services.
Korporate AmeriKa has been export junk paper for a number of decades now, and it long ago became America's number one export.
Ever heard of that $9 trillion that Bernanke shipped all over the world? Was in the news not so long ago, kiddie.
That $9 trillion (and probably much more) went to both banksters, and private banksters, and private corporations located in America, and Europe and Asia.
To reimburse them for all those junk paper items exported to them, sweetums.
I realize thinking is sooooo hard, but give it a shot sometime, dearie.
EGHADS !!!!!!
well we had the usual 3:30 am whacking in Au/Ag right up to and thru the bell according to hoyle with bad news all around to take in....it's time once again to BTFD-
The fattest people on the planet just consume.. they don't produce.
They don't even leave the car.. strait through Mcd's drive-through window.
In order to export something you first have to make it.. fatty not interested in that.
Memo
To: Ben Bernanke
From: Barack Obama
Date: 03 MAR 2011
Subj: Dollars
Text: Print more!
If the President is going to get that export level he talked about we have to get moving.
Just print the difference,you know what
just double up on that one,see problem solved.
i'll say it again, as hopefully this time i'll get a better response- short this market! names i'm looking to short: http://www.hedgefundlive.com/blog/short-this-market-ill-say-it-again-which-names-to-short