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US Trade Balance Worst In 39 Months With Largest 3 Month Drop In 20 Years
While NFP dominated the headlines, the US Trade Balance (deficit) limped out and dropped far more than expected. At a $52.565bn Deficit, this is the worst trade balance since October 2008. Perhaps more shocking is the fact that the 3 month drop (rise in deficit) is the largest ever on record, dropping $9.4bn in that period. Unsurprisingly, the bulk of this drop is in the 'Petroleum' trade balance which has accelerated the most in the last 3 months (coincidentally dropping the most since last March and we know how that ended).
The deficit is rising...
and reaccelerating...
Charts: Bloomberg
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All this good is making me nuts!
who cares, nfp was a beat...
Exactly. The market's concern for hard data is measured in microgivashitz as long as we have really nice (fabricated) employment numbers and the iPad 3.
sunny
“But if the GDP is down 9% and we can borrow 12% that will be a 3% increase and I will get re-elected, spend that money!!! Its all about me.”
The stupidest president of all time? Obama.
You misspelled his name B-U-S-H...
And it ain't even close...
But they both graduated Harvard? Maybe a tie?
Naw.... Bush by the equivalent of a 9-0 SCOTUS decision...
Obama is very smart.... He's just spineless...
Bush was clueless.... If his grandpappy wasn't who he was, he would be pumping gas and collecting junkers in his front yard....
How did this bad news escape the censors?
These pretzels are making me thirsty!
uhhh hello??...new iPad?...what problem?
was it the same price as the last one?
Let's see: you boost an economy by borrowing crazy amounts of money while not fixing the fact that our manufacturing sector has been gutted. What do you think the future of our trade deficit is going to look like if this recovery actually takes root? And who is going to finance it?
Where is it in my economic best interest to buy a product built by union workers from a company propped up by bailouts.? All their profits will be funneled some way or another back to the Democratic party. I won't buy any product from a company that has an Obamacare exemption.
We can't fight corporate fascism by complaining about the politicians only.
That's not anywhere close to my point, however I'll answer that question:
Because it is in the best interest that your neighbor gets ahead. That way he can buy a house, as opposed to getting foreclosed on and fucking up the real estate in your neighborhood.
It's in your best interest that people in your community have jobs, rather than get desperate and turn to crime.
Those are just some examples.
The best was to have jobs is to shrink the size of the federal government from 24.1% of the GDP to 18% of the GDP.
The best way to have balance of trade on even terms is to stop the deficits.
If China can't buy the fricking bonds to finance the deficit then they can't ship their crap over here because it will not be financed. That deficit is financed by someone.
Gold/silver 100% fractional banking reserves would create one world currency, balanced federal budgets, balanced world trade.
The politicians purposely run up the deficits, budget and trade, to make the people feel wealthier than what is really the case. The purposely sabotage the economy to get re-elected.
This shit will end, soon.
@midtowng
Your examples are basic "economics", essential for sustaining individuals, families and communities. Economic experts debate everything under the sun except the basics.
Obviously importing more iPads to feed all those on foodstamps.
Yep.
Finally some encouraging news!!!
And Greece..."comes to America." Funny how the propaganda only accelerates the boondoggle.
Fake market influenced by fake figures
PM's open with a solid drop. Cant wait to see the markets ignore this one.
And... it's gone.
Silver is $34.24 now, recovered as quickly as it fell.
Hocum-Pocum. All other currencies fell out of bed at 0830 Eastern and the dollah is unchanged.
Drum roll please... futes are up.
Nobody wants what Babylon is offering.
Keep on keeping on with life away from Babylon, the citizens of that crumbling civilization are due for a nasty shock...
The only thing I want from Babylon is the kings head on a silver platter...
... key word in that sentence being "silver" ...
The deficit is rising...good news, Americans are consuming again, have confidence in the future. A new boom has begun. Enjoy the party!
No stupid, the AMOUNT of 'consuming' is NOT up at all! Just that what IS being bought is being charged to a credit card!
so, we're back into a credit bubble again, and that was pretty fun the last time (regardless of pretty much anything else).
Orgy-porgy!
Huge jerk up in DXY US dollar index, get your helmets on. Smashmouth time. May be 'now or never' effort to get wholesale gasoline down. PMs in for major collateral damage.
I love a good sale on Friday.
somehow this trade balance news is being completely ignored on Bloomberg, all focus on the "number beat" of jobs, i wonder why
perhaps they will address it if or when the market turns down, you know we need continuous "explanation" of 0.04% upticks or downticks in futures
I wish Zero Hedge would not bother us with these mundane details. Lets concentrate on what is important. More eating out and having fun. Mickey D and Burger King rocking. And we are buying more stuff. Getting those credit cards revved up again. Maybe inflate those bank bonus's that were down a tad this year. How do they make it on $350,000.00 a year? And they contribute so much to the economy.
But gold is getting hit this morning. Market to follow?
Man, I can just taste this "sell the news" market today.
What, maaaan? We're all totaly stoned on NFP hopium leave us alone with this bad news maaaan harshin our buzz!
Sing it strong brother!
I like turtles.
But, but.........there was no mention of this on the finance page??
Someone knows about it or futures would be pumped more than they are, the retail that read the finance headlines are the buyers.
And don't forget.......all big rallies usually end on super good news.
You can tell this market is worn out at these levels. I don't trust it. I'm not saying a new high isn't possible but you better keep an eye on it.
as my favourite market commentators (the bears) say:
when you have the bailouts...
...you don't need to sell anything
'Trade deficit'...lol what trade what do we make anymore? Scrap metal metal to China from Kash fer Klunkers?
bunkerbusters
And I was hoping that the unprecedent manufacturing boom will boost the US GDP. Maybe the Fed need to expand its balance sheet more, like the ECB just did.
And so goes our Biflationary mess: the slightest uptick in economic activity and employment will promptly be met by inflationary headwinds. Hence the dramatic change in the trade deficit in return for a piddling amount of economic lift. The trend continues until we reach stall speed and then get another round of "softness" and delevering (aka deflation)
Or another 'event' out of the blue like maybe Tel Aviv 'tragic attack by Iran' over one of these nites killing hundreds of Israelis green-lighting Iran invasion....has to be a false flag here because the war against Iran they need so desperately is at a stalemate, no one supports it at all....watch the false flag its a real mother.
I hear there's a secret project to tunnel through earth's core and suck the oil out from underneath. That'll show 'em
leon panetta is checking these numbers with the UN, after all if they OK our military actions why not the numbers from treasury and BLS..hmmmm
asalamaleka just de-link the dollar from crude already!
Forced to buy more imports with a declining dollar and inspite of the declining dollar no one seems to want to buy our exports. That would concern me if I were on the Federal Reserve Board... and I actually gave a shit.
The bad news is that they only want to buy our gasoline.
"MIC" to the rescue helping the trade balance - how patriotic?
"U.S. Finalizes $30 Billion Weapons Deal with Saudi Arabia" *12/29/11 http://www.haaretz.com/news/middle-east/u-s-finalizes-30-billion-weapons...
Ps. the most repressive regime in the entire middle-east,... second to none
Ps2. but wait, there's more, Kuwait, Oman, and Pakistan waiting with bated breath.
Now look, my memory is bad but I know for sure the last time we reported "huge demand for US vehicles cuts foreign imports" now today it's "huge demand for foreign imports". These bastards just never give up do they?
Of course we all know where the demand for the US vehicles are........the dealership parking lots. Probably be the same at the KIA parking lot "yes, we have 75 vehicles of each model on our lots for you to choose from at all times......some are even stacked 6 high!"
direct GDP shot
more goobermint spending will surely be the centralPlanner's remedy
All right, WHO gave you a copy of the RomneyBama script?
Worst trade balance for whom?
That's $52.565bn (at least) monopoly dollars for real goods and services produced by the sweat, blood and tears of the world's slave labor.
With a tangible value of say... a tenth of that? iCry.
But, But, But, Obama told us that exports were booming and that we were on track to double our exports within 5 years???????
Entire world is going to export their way to prosperity
Currency wars and the Island of Misfit Toys (where i assume 50% of all exports end up) are going to be most prosperous.
The whole green energy thing going sooooo well.
Japan has now joined us on the current account deficit. This will end well
Expect the trade deficit to go parabolic as the dollar continues to erode in purchasing power. I think it will easily cross 1/4 trillion a month in a couple years. That is my low end estimate. The government is not letting capitalism work to expand exports while at the same time the value of the currency is being massively debased.
the petro dollar is king.....until the petro yuan takes over.
rising dollar is bad.
http://www.jinrongbaike.com/
http://www.cnhedge.com/
Elevator down,please.
Sorry,you'll have to jump.
Keep on spending in the free world
(tune: Neil Young - Keep on rocking in the free world)
filling up your shops with chinese shit, and giving them your dollars.
what's the difference.
Shale gas to the rescue!!!
Ummm... maybe not
http://fuelfix.com/blog/2012/03/09/fracking-failing-to-crack-china-europe-shale-exxon-says/
Memorandum from the Office of the President
To: Ben Bernanke
From: Pres. Obama
Subject: Trade Deficit
Message: Print!
From: Ben Bernanke
To: Pres. Obama
Subject: Trade Deficit
Message: OK Sir, I'm on my way to the helicopter pad