Trade Deficit Spikes To 6-Year High Despite Tumbling Dollar

Don't show President Trump this chart...

While the equity markets are exuberant, today's payrolls data suggests all is not awesome, and the US trade balance print is just terrible.

Despite the relative freefall in the US Dollar, the US trade deficit disappointed expectations, spiking above $50 billion.

 

https://www.zerohedge.com/sites/default/files/inline-images/20180105_trade.jpg

This is the biggest trade deficit since January 2012.

Imports rose 2.5% to a record $250.7b on more inbound shipments of consumer goods and industrial supplies.

Exports climbed 2.3% to all-time high of $200.2b, led by increased shipments of automobiles, consumer merchandise and capital goods including commercial aircraft.

As Bloomberg notes, the widening trade gap could be a drag on fourth-quarter economic growth, keeping gross domestic product from advancing at least 3 percent on an annualized basis for a third straight quarter. Net exports added 0.36 percentage point to the 3.2 percent gain in third-quarter GDP.

In November, the unadjusted U.S. merchandise shortfall with China climbed to the highest since September 2015, while the gap with European Union countries was the largest in a year

Perhaps worse still, ex-Petroleum, this was the biggest trade deficit in US history...

 

https://www.zerohedge.com/sites/default/files/inline-images/20180105_trade1.jpg

Comments

macholatte Dame Ednas Possum Jan 5, 2018 9:53 AM Permalink

 

Don't show President Trump this chart...

I’m calling BULLSHIT!

That is exactly the chart Trump and every numb skull politician should see.
Trump had no magic wand to wave over the 70,000+ closed factories to suddenly get them to open and start making shit that currently is imported.  Except for weapons, war, cash, reparations, food, raw materials, scrap and a few other odds & ends, the USA imports most everything as per plan of the globalists.

But everybody knows this.

 

 

 

In reply to by Dame Ednas Possum

TeethVillage88s macholatte Jan 5, 2018 10:08 AM Permalink

But we Export Financing, as a Money Center and Tax Haven, USA is a world Leader built in the Image of English Trade Model.

Plus we use State Department to provide Bribes to Foreign Countries, and our International Assistance Program is rich source of Bribes too. DEA & Military Construction Budgets are also indicated. We export Bullshit. We export Politically Correct Progressive European Ideas. QE is Exporting Inflation to Egypt, China, Brazil, Emerging Markets... EU and London did this also.

- Exporting Bread Winner Jobs doesn't count in this discussion through

http://www.zerohedge.com/news/2016-05-12/bank-ci-npls-are-rapidly-incre…

1st Quarter Non-Performing Loans in Commercial and Industrial Loans
http://www.bankregdata.com/bkLDmet.asp?loan=lnci&met=NPL&inst=HC1883693
(Looks like Website deleted out NPL for the TBTF Banks)

By Total C&I Loans Descending

In reply to by macholatte

Dame Ednas Possum Stuck on Zero Jan 5, 2018 9:28 AM Permalink

There’s an excellent set of podcasts on Macrovoices (Luke Gruen, Mark Yusko, Jeff Snyder) comprising a very interesting conversation on the end game for the dollar... and the likelihood there will in fact be a scarcity of USD following the Eurodollar mechanism collapse that will be the final rally in the dollar before it collapses. 

I strongly recommend anybody with an interest listening to it. 

In reply to by Stuck on Zero

YUNOSELL Dame Ednas Possum Jan 5, 2018 9:33 AM Permalink

Yes, I concur. It was an amazing series of debates that really opened my eyes to what is really happening behind the scenes, and it fills in a lot of gaps and helps explains USA's increasingly erratic and desperate actions to try to hold on to the status quo when the US dollar system has not been working since 2008 or even before that, especially for other countries.

In reply to by Dame Ednas Possum

Dame Ednas Possum YUNOSELL Jan 5, 2018 9:55 AM Permalink

Who knows.  We live in crazy times.  Anything is possible over the short to medium term but I have no interest in timing trades. 

The fact is that I've had boating accident after boating accident for the past decade now and I won't be breaking-out the scuba gear until the mathematical certainty of a moonshot arrives within the next 5 years.  

There's no hurry.   Just keep stacking. 

In reply to by YUNOSELL

TeethVillage88s OverTheHedge Jan 5, 2018 10:27 AM Permalink

Broken Windows Fallacy was used to promote Vietnam War, but is a Fallacy.

- I think you mean we project power to make up for poor stewardship of USD, Deflation of Dollar, Inflation, poor Demographics, Budget Deficit Spending, poor budgeting and debt leveraging of out big States and Big cities and the... poor auditing and poor financial ratings of all US Entities

Power, Control, Status, Position, Titles, Lands, Access,

In reply to by OverTheHedge

yogibear FreeShitter Jan 5, 2018 9:39 AM Permalink

In the meantime central banks are stepping in and using huge sums of printed dollars to keep bonds from crashing and to keep stocks from tanking.

You can see it happen in bonds. Anytime bonds look like their going down hard a mystery buyer come in to save the day.

There will be 10's of trillions more added to the deficit, while central banks use their unlimited printing buy it all up.

In reply to by FreeShitter

Herdee Jan 5, 2018 9:25 AM Permalink

The structure of American society isn't changing. They're caught in a deflationary trend which is continuing. As long as the U.S. wants to keep imitating Rome she's going to keep the crooks running the jail system rich. Trouble is, the rest of the world has opened their eyes. Nobody believes in Washington's politicians. They're deadbeats.

TeethVillage88s Jan 5, 2018 9:30 AM Permalink

Economist has NEGATIVE $798 Billion Trade Balance.

 

http://www.economist.com/node/21604509

 

Trade balance Current-account balance Currency units Budget balance Interest rates Country latest 12 months, $bn latest 12 months, $bn % of GDP, 2016* Feb 16th, per $ year ago, per $ % of GDP 2016* 3-month latest 10-year government bonds, latest

United States -798.Oct

hm.... was negative $800 Billion in 2006 as per FRED Charts/Graphs/Data. (low gas prices)(Germany has Trade Surplus of like $250 Billion and has no Gas or Oil... so USA is like Mono Industry in Gas/Oil?)(Outsourced Jobs, Reduced Employment in Gas & Oil Drilling, Reduced Job Compensation & Job Benefits, Planned inflation, Planned Deflation of US Dollar, Euro, all currency, Cost of Living increases, Utilities are mandatory and inflating, phone fees are mandatory for home ownership & renting, Usury Mortgage & Debt, Insurance Mandatory... Boskin Commission Reforms to GDP & Inflation) Welcome to the English Trade Model where slave labor overseas are used to increase executive & investor profits... while knifing the US Citizen in the back.

TeethVillage88s Jan 5, 2018 9:57 AM Permalink

What browse works in zerohedge, Tylers?

My votes disappear, and don't see latest comments button on home page.

New ZH look? Wonder if old pages still work.

"oh and death to america, saturday night live sketch of Iran"

Manufacturing:
http://research.stlouisfed.org/fred2/series/MANEMP (12 Million down from 19.5 Million) All Employees: Manufacturing

Information Services:
http://research.stlouisfed.org/fred2/series/USINFO (2.65 Million down from 3.7 Million) All Employees: Information Services

Investment
http://research.stlouisfed.org/fred2/series/ROWFDNQ027S Foreign Investment
http://research.stlouisfed.org/fred2/series/GPDI Domestic Investment
http://www.bea.gov/newsreleases/international/intinv/iip_glance.htm

Money
http://research.stlouisfed.org/fred2/series/mult (Up to Date, but looks like Crap, eh?)
http://research.stlouisfed.org/fred2/series/M1V (M1 seems to increase with Mortgages)
http://research.stlouisfed.org/fred2/series/M2V (M2 seems to show different bubble perhaps)
http://research.stlouisfed.org/fred2/series/MZMV (MZM seems to show peak in Economy 1981)

You have to add 200K jobs to keep up with growing working age US Citizens (Demographics)... we have failed to add like 20-50 Million Bread Winner Jobs... while exporting capital to China, Latin America, Europe, East Europe... Mal-Investment in London Stock Market.

Do we need Capital Controls to get Investment in US Bread Winner Jobs?

- $2-4 Quadrillion USD Denominated Derivatives
- $700 Trillion Systemically Important Derivatives
- $15 Trillion MZM Money Supply, MZM Broadest Measure?

https://fred.stlouisfed.org/series/MZMNS

- $75 Trillion in Current Debt & Liabilities
- $20 Trillion in Federal Debt
- $4 Trillion Annual Federal Budget
- $1 Trillion a year for MIC, DHS
- $1.5 Trillion for Medicare & Medicaid
- $1 Trillion a year for Social Security
- $40 Trillion in Stocks/Equities
- $4.7 trillion in US 401(k) plans
- $80 Trillion in Bond Market
- $70 Billion a year in Welfare
- 41 Million people on Welfare
- 100 Million US People not working
- 8 Million Elderly on Adult Care Welfare/SSI
- Pension Problems... $1 Trillion?
- Bankrupt cities and states, PR, IL, Chicago, Detroit, Hartford
- So we are becoming a PIIGS type country which will sell our own birth right to the Banks eventually

Total Current Account Balance for the United States (BPBLTT01USA637S) 2006 = - $800 Billion?
https://fred.stlouisfed.org/series/BPBLTT01USA637S

TeethVillage88s Amphius1 Jan 5, 2018 10:21 AM Permalink

Does this matter at all?

Civilian Labor Force Participation Rate: with No Disability, 16 to 64 years, Men (LNU01376940)
Dec 2017: 81.8 Percent, Not Seasonally Adjusted
https://fred.stlouisfed.org/series/LNU01376940

-

Civilian Labor Force Participation Rate: Men (LNU01300001)
Dec 2017: 68.5 Percent, Not Seasonally Adjusted
https://fred.stlouisfed.org/series/LNU01300001

-

Doors... Video youtube... This is the End... Men past retirement age working and skewing the results upward... for part time earnings

In reply to by Amphius1

TeethVillage88s wide angle tree Jan 5, 2018 10:23 AM Permalink

Germany, Japan, China, South Korea, Taiwan have protectionism... Jim Rickards says USA took down Protectionism in 1944 and began 70 year decline... much like the British when they took down the Corn Laws.

https://en.wikipedia.org/wiki/United_States_free_trade_agreements

"Trade Agreements"

1980 - Most favored Nation Status for China (J. Carter)
1984 - Caribbean Basin Initiative,
1994 - WTO Formed, Marrakech Agreement
1994 - War on Jobs, NAFTA,
1994 - Most Favored Nation Status for China Reinstated after Tianamen Square
1996 - Most Favored Nation Status for China Reinstated after Test
2000 - Permanent Normal Trade Relations with China and WTO Membership for China
2005 - CAFTA-DR Ratified, 2006

In reply to by wide angle tree