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US June Trade Deficit Surges 7% To $43.8 Billion As Strong Dollar Slams Exports, Imports Rise
Dear Fed: behold another example of why your ludicrous rate hike ideas will crush the economy. Moments ago the BEA reported that the June international trade deficit spiked by 7.1% from $40.9 billion in May (revised) to $43.8 billion in June, as exports decreased and imports increased.
The previously published May deficit was $41.9 billion. The goods deficit increased $2.9 billion from May to $63.5 billion in June. The services surplus decreased less than $0.1 billion from May to $19.7 billion in June.
As a result of the jump in the USD, exports of goods and services decreased $0.1 billion, or 0.1 percent, in June to $188.6 billion. Exports of goods decreased $0.2 billion and exports of services increased $0.1 billion.
- The decrease in exports of goods mainly reflected decreases in capital goods ($0.8 billion) and in industrial supplies and materials ($0.6 billion). An increase in consumer goods ($0.8 billion) was partly offsetting.
- The increase in exports of services mainly reflected an increase in other business services ($0.1 billion), which includes research and development services; professional and management services; and technical, trade-related and other services and increases in several categories of services of less than $0.1 billion. A decrease in transport ($0.2 billion), which includes freight and port services and passenger fares, was mostly offsetting.
But while GDP boosting outbound trade declined, inbound rose rose: imports of goods and services increased $2.8 billion, or 1.2 percent, in June to $232.4 billion. Imports of goods increased $2.7 billion and imports of services increased $0.1 billion.
- The increase in imports of goods mainly reflected increases in consumer goods ($1.7 billion) and in industrial supplies and materials ($1.2 billion). A decrease in capital goods ($1.3 billion) was partly offsetting.
- The increase in imports of services mainly reflected an increase in travel (for all purposes including education) ($0.2 billion) and increases in several categories of services of less than $0.1 billion. A decrease in transport ($0.2 billion) was mostly offsetting.
Perhaps it is time to adjust the definition of GDP to be boosted by net imports.
Looking at the geographic breakdown, the following picture emerges:
- The balance with Canada shifted from a surplus of $0.2 billion in May to a deficit of $3.1 billion in June. Exports decreased $1.1 billion to $23.0 billion and imports increased $2.2 billion to $26.2 billion.
- The deficit with Mexico increased from $4.1 billion in May to $5.4 billion in June. Exports increased $0.1 billion to $20.0 billion and imports increased $1.4 billion to $25.5 billion.
- The deficit with China decreased from $30.6 billion in May to $29.0 billion in June. Exports increased $0.9 billion to $10.5 billion and imports decreased $0.7 billion to $39.5 billion.
Finally, when stripping out oil, the US trade deficit is once again en route to surpassing its all time highs. Or rather lows.
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Trade ballance does not mater...........................with a printing machine
Yup, that printing machine crushed the Amerikan dollaro for years. Like a ballon forced underwater, it'll shoot up until it finds its own level. Long the US king dollar!
repost, but it fits here:..
from today's MSM there is no hope of jobs and trump is not going to bring em back..see how the MSM protects the elite .01% and the NWO globalism..it was just economic destiny we lost millions of jobs nobody was to blame..they think we are idiots.
"- Donald Trump vows to bring back the millions of American jobs lost to China and other foreign competitors if voters put him in the White House.
Economists say he wouldn't stand a chance: Trump's boundless self-confidence is no match for the global economic forces that took those jobs away."
The only way to bring back the production (peacefully) would be by tariffs and the cancelling of several trade treaties.
Americans have been so propagandized about the evils of protectionism that they would be all screaming at the horror of it,,, including those unemployed.
That's what you get when you allow a bank complete control of your economy by forced use of its fiat currency. Nothing surprising here except that the morons let it go this long.
Raising rates any minute now....... waiting......... waiting.............. A rate ris imminent....... still waiting..........
"Dear Fed: behold another example of why your ludicrous rate hike ideas will crush the economy."
I get confused. Do we bash ZIRP or call normalizing rates Ludicrous?
Hurry up! Everyone else is doing the wrong thing, so we need to do more of the wrong thing to stay competitive. How bout being a little unconventional? Maybe we could have a responsible interest rate, and defend against all the currency deflators by making import tarriffs proportional to currency spreads? There has to be a better answer than just to destroy our currency faster than everyone else.
Also, could this just mean that everyone else's economies are tumbling faster than ours? Is it all about exchange rates or is some good old fashioned loss of overseas demand be a factor here?
Is a trade deficit so bad? We send depreciating pieces of paper off shore and get goods in return. If they keep the paper long enough we don't have to give anything in return.
Meanwhile ZIRP is evil. It is warping every market and cheating savers. How is a meer 1/4% a 'ludicrous rate hike?' When the rate shot over 20% the economy took off in the 1980's. It was wonderful especially after the unemployment and inflation of the 1970's. It was like springtime with everything coming back to life in the economy. Soft money encourages users. Hard money encourages the savers which helps the producers. We have been soft for far too long. It's time to get hard again.
QE is debt cancellation.
No QE is high deficit with high USD.
Does any real data matter anymore?
We're an empire now, and when we act, we create our own reality
We're bigger than U S Steel
The world has all the military systems it needs now, for the time being.
When the Dollar is not so strong, we'll talk.
---Your sometimes allies.
Netflix isnt trade its just pure profit, 5%+ per day before leverage!
buy buy buy!
SHORTS GETTING BTFO!!
That weak currency helps exports is BS.
Works only until they have to buy the raw materials at the higher price. And besides,,, what is the u.s exporting besides wars and war materials?
I think that over half of the workforce unemployed answers that question.
Enjoy your paid vacations con-gress critters,,, flying around on what's left of the taxpayers dime.
Maybe do everyone a favor and just stay on vacation.
Exports? What the fuck is made here any more?
Everything I own has the proud label "SOLD IN AMERICA."
The USSA's biggest export is propoganda (CIA controlled Hollywood).