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US Imports Collapse Most Since Lehman
Anyone scratching their head how it is possible that in an environment of a soaring dollar the US trade balance just tumbled, and printed its smallest monthly deficit since 2009, here is the answer: in January, US imports (with the delta entirely in the goods, not services, column) plunged from $232 billion to $222 billion, a whopping $10.2 billion or 4.4% drop, and the biggest monthly decline in US imports since the peak of the financial crisis in the aftermath of the Lehman collapse.
The irony: since exports also dropped but did not plunge quite as rapidly, this disturbing number will actually be a boost to US Q1 GDP, which as reported recently, is now tracking at 0.0% with the Atlanta Fed.
And now time for a question: with US and Chinese imports both plunging, just who is Europe "exporting" all of those surplus goods and services to?
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Why can't we get over this Lehman hurtle?
I look forward to the day when I read: "The most since the squid".
Of course Al Gore will probably shut the internet down when that happens. Just in case that day is today, it's been nice knowing you.
Squish the fish!
Because it was the result of Bush Republicanism.
World is refusing to ship more goods to USA for useless electronic dollars as long as Pentagon remains non-interventionist.
Pentagon and Saudis want strong dollar. Bank lobby wants weak dollar. Go figure.
Who wins, who loses?
Pentagon and Saudis win eventually and they are winning now.
Soon, bank lobby will be obliterated. It is next in line. Counterattack against Bank lobby + Iran alliance started with Yemen
It's almost like you're not aware than the banks own Saudi Arabia, just like they own every single part of the MIC.
ekm has his own thesis on things and he sticks with it, I'll give him credit for that. I would like to know how he defines "winning" for the Pentagon lobby. Is it when USDX hits a certain number? Is it when Brent/WTI falls below, say, $20/barrel?
Pentagon control of Federal Reserve as it was from 1960 till 1990 when soviet union collapsed.
That would be full recovery
I can without hesitation say life was better when gas was 99 cent a gallon.
Life was probably better before usury and fractional reserve lending.
And how would the banks own saudi arabia?
Bank lobby had no power from 1960 till 1990 when soviet union collapsed.
pentagon was owning federal reserve
Leo Wanta collapsed the Soviets.
The banking lobby was neutered by Glass Steagall.When Glass Steagall was repealed in the 90's, Investment banks got control of depositor accounts and leveraged them 40:1 creating TBTF, and taxpayer funded bailouts. Add ZIRP, QE to infinity, and debt monetization and the bank lobby controls govt and by extension, the Military Industrial Complex now, and are using it primarily to protect the bank lobby. This will continue into the forseable future until the Ponzi collapses.
Hopefully we are exporting more then......right?
Nope:
http://www.zerohedge.com/news/2015-04-02/initial-claims-slide-again-trad...
aww shucks......I'm sure things will work out just fine.
Yay! The trade deficit is shrinking. USA! USA! USA!
KING DOLLAR, BITCHEZ!
I gave you a thumbs up for wishful thinking, but everyone knows it simply isn't true.
So this is the plunge in oil prices and the port closures, right?
Yes I would think so. And with all the oil storage filling up in the US, you'd think they would cut the actual quantity of oil imports, no? I just read this idiotic article http://www.bloomberg.com/news/articles/2015-04-02/iraq-s-four-mile-line-...
Not being an expert on what will destroy the economy, a port closure may have an impact on trade. Do you think? Perhaps not.
Everyone finally has too much of everything. That or we're all too busy looking at our phones to buy anything.
The EU is shipping to Russia right? Oh...
China clearly must defend its market share of USA imports.
So the time to add water to the Yuano has arrived. Shaken in Shanghai, not stirred.
Let the Chinese front on the Worldwide Currency Wars advance!!
I miss Lehman.
And Dick Fuld too. Let's all do something for him on his birthday - as a show of support - To help raise his spirits and encourage him to get back into the game in a big way. He really truly belongs back in the Billionaire's Club -goddam Paulsen and Blankfein. They really screwed little Dickie.
How about a 20 nail gun salute? Or is that reserved for the day of the funeral?
Flashback:
Lehman Brothers
https://www.youtube.com/watch?v=txDWRR5WRFQ
are you ready to raaaammmpppp iiiiiiiiiiiiiiiiittttttttttt!!!!
Drink away (he said "since Lehman.")
Sorry but how much of that number is from energy imports/exports? Combine that with the poor quality of ersatz out of China and you'll have a better picture of things.
Most Zerohedge "Since Lehman" headlines since Lehman...
I am betting the biggest contributor is a drop in imported oil.
A lot of that oil is also destined for the refineries...and thence exported to Europe and emerging markets in South America.
It means Europe is in recession.
It also means, with Saudi production reaching new highs, that there is likely a lot of energy going into storage elsewhere in the world that we don't know about here.
Stockpiling always occurs while doing war gaming scenarios for reasons of JIC, just in case prior to hostilities breaking out.
"And now time for a question: with US and Chinese imports both plunging, just who is Europe "exporting" all of those surplus goods and services to?"
that's a trick question, isn't it? besides the whole rest of the world unanswered part, the graph in the article is about monthly changes of US Imports
if the graph would show the full numbers instead of the monthly changes, it would look differently, and less like "plunging". A quick google search gives me this: "The United States recorded a trade deficit of 35'444 USD Million in February of 2015"
subtract 10 billion per month... another three months of such "plunging" and the US has reached... balanced trade... for the first time since the Seventies of the last century
West coast ports were shut down.
It was the weather at the port of long beach!
Low import means low export. Sign of lower GDP.
Everything is worse than before Lehman, but the markets continue to go to nose bleed territories.
the amerikan consumer
has no credit left to consume with
thus the decline in imports
The author do NOT take into account the strengthening of the dollar on the global arena.... same goods purchased over seas are cheaper...
Further, our exports have now gotten more expensive hence buyers will look elsewhere....
Now what would be interesting to read, would be an article looking at the same data BUT... that takes into account the strengthening US currency...
This article is shameful crap.....
You keep saying that lower imports and higher exports are a boost to GDP. But that's not reality. When you chart the trade deficit against the GDP, you will see a lower GDP when the trade deficit shrinks.