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Old August 6th, 2013, 07:58 AM   #1
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US Trade Deficit Plunges To Lowest Since Oct 2009

Trade Balance plunged in Jun 2013:


Why is this? Are imports down?


Nope, but exports have increased...


US Exports surged at a record high of $191.2 billion, an increase of $4.1 billion compared to May, even as imports declined by $5.8 billion to $225.4 billion, resulting in a trade deficit of just $34.2 billion. More details from the Census Bureau:
  • The May to June increase in exports of goods reflected increases in industrial supplies and materials ($1.5 billion); capital goods ($1.5 billion); consumer goods ($1.0 billion); foods, feeds, and beverages ($0.3 billion); and other goods ($0.3 billion). A decrease occurred in automotive vehicles, parts, and engines ($0.4 billion).
  • The May to June decrease in imports of goods reflected decreases in industrial supplies and materials ($2.5 billion); consumer goods ($1.6 billion); other goods ($1.2 billion); foods, feeds, and beverages ($0.4 billion); and automotive vehicles, parts, and engines ($0.3 billion). Capital goods were virtually unchanged.
  • Exports of services increased $0.1 billion from May to June. The increase was mostly accounted for by an increase in travel ($0.1 billion). Changes in the other categories of services exports were relatively small.
  • Imports of services were virtually unchanged from May to June. A decrease in other transportation ($0.1 billion), which includes freight and port services, was mostly offset by increases of less than $0.1 billion in several categories.

    News Release: U.S. International Trade in Goods and Services

So according to US Balance of Payments, the US is exporting more. Must be a sign of the manufacturing sector making a comeback:


Nope...

What is vindictive about the surge in exporting and the stagnation of imports is due to the fact that Americans cost of living is increasing. They're importing less, and exporting more of the stuff they do not need. Like Crude Oil for example:


Also, looking at retail sales from May to June, you will find that Gasoline Sales had a 0% increase in-between this month. Actually Gasoline sales from May - June had a $2.6 Billion dollar decrease.

http://www.census.gov/retail/marts/w...ts_current.pdf

So, in short: Americans are exporting alittle bit more, and it's importing slightly less. It's not due to any underlying fundamentals regarding the economy. It's not due to it's manufacturing base improving, but due to the cost of living rising for most Americans.

The only reason why I thought I'd take the time to mention this because this bit of news isn't exactly making headlines. There was a time when the Balance of Payments statistics were the most anticipated piece of economic news. These statistics generally determined the strength of the US Dollar, which is weak all across the board today.

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Old August 6th, 2013, 08:12 AM   #2
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The long-term, obscene balance of trade deficit has been maintained with funny money.

Increased "cost of living" expense is a stealth way of saying "inflation."

The two are connected intimately.
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Old August 6th, 2013, 08:23 AM   #3
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Thank the Petrodollar and the Reserve Currency. The US doesn't even have to pay for it's imports with exports. It can just export it's inflation all over the global.
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Old August 6th, 2013, 08:54 AM   #4
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Quote:
Originally Posted by AmazonTania View Post
Trade Balance plunged in Jun 2013:

Why is this? Are imports down?
Do you bimbos ALWAYS need to be lead-around?

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Old August 6th, 2013, 09:05 AM   #5
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Do you bimbos ALWAYS need to be lead-around?
First of all, how can a trade deficit boost GDP if GDP equals C + I + G + NX?

Secondly, do you not understand that there are two parts of a current account deficit?
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Old August 6th, 2013, 10:03 AM   #6
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Do you bimbos ALWAYS need to be lead-around?
That would be "led" around.
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Old August 6th, 2013, 10:24 AM   #7
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Quote:
Originally Posted by AmazonTania View Post
Trade Balance plunged in Jun 2013:


Why is this? Are imports down?


Nope, but exports have increased...


US Exports surged at a record high of $191.2 billion, an increase of $4.1 billion compared to May, even as imports declined by $5.8 billion to $225.4 billion, resulting in a trade deficit of just $34.2 billion. More details from the Census Bureau:
  • The May to June increase in exports of goods reflected increases in industrial supplies and materials ($1.5 billion); capital goods ($1.5 billion); consumer goods ($1.0 billion); foods, feeds, and beverages ($0.3 billion); and other goods ($0.3 billion). A decrease occurred in automotive vehicles, parts, and engines ($0.4 billion).
  • The May to June decrease in imports of goods reflected decreases in industrial supplies and materials ($2.5 billion); consumer goods ($1.6 billion); other goods ($1.2 billion); foods, feeds, and beverages ($0.4 billion); and automotive vehicles, parts, and engines ($0.3 billion). Capital goods were virtually unchanged.
  • Exports of services increased $0.1 billion from May to June. The increase was mostly accounted for by an increase in travel ($0.1 billion). Changes in the other categories of services exports were relatively small.
  • Imports of services were virtually unchanged from May to June. A decrease in other transportation ($0.1 billion), which includes freight and port services, was mostly offset by increases of less than $0.1 billion in several categories.

    News Release: U.S. International Trade in Goods and Services

So according to US Balance of Payments, the US is exporting more. Must be a sign of the manufacturing sector making a comeback:


Nope...

What is vindictive about the surge in exporting and the stagnation of imports is due to the fact that Americans cost of living is increasing. They're importing less, and exporting more of the stuff they do not need. Like Crude Oil for example:


Also, looking at retail sales from May to June, you will find that Gasoline Sales had a 0% increase in-between this month. Actually Gasoline sales from May - June had a $2.6 Billion dollar decrease.

http://www.census.gov/retail/marts/w...ts_current.pdf

So, in short: Americans are exporting alittle bit more, and it's importing slightly less. It's not due to any underlying fundamentals regarding the economy. It's not due to it's manufacturing base improving, but due to the cost of living rising for most Americans.

The only reason why I thought I'd take the time to mention this because this bit of news isn't exactly making headlines. There was a time when the Balance of Payments statistics were the most anticipated piece of economic news. These statistics generally determined the strength of the US Dollar, which is weak all across the board today.

You might want to send Eric Cantor a copy of the post. He's still trying to sell growing deficits snake oil. While you're at it send politifact a copy to.

PolitiFact finds its pants on fire - The Maddow Blog
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Old August 6th, 2013, 10:30 AM   #8
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Originally Posted by skews13 View Post
You might want to send Eric Cantor a copy of the post. He's still trying to sell growing deficits snake oil. While you're at it send politifact a copy to.

PolitiFact finds its pants on fire - The Maddow Blog
So you don't know the difference between a trade deficit and a budget deficit. That's... Not... Surprising...

Also, sure, the budget deficit has temporary shrunk due to all the extra revenue from capital gains being realised before the tax hikes. The budget deficit should decrease at it's fastest pace since the 60's, considering that it increased at it's fastest pace, ever...
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Old August 6th, 2013, 11:53 AM   #9
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Originally Posted by AmazonTania View Post
So you don't know the difference between a trade deficit and a budget deficit. That's... Not... Surprising...

Also, sure, the budget deficit has temporary shrunk due to all the extra revenue from capital gains being realised before the tax hikes. The budget deficit should decrease at it's fastest pace since the 60's, considering that it increased at it's fastest pace, ever...
Yes, increased government spending to prevent the country and the world from sliding into a crippling depression will do that. Which begs the question, where are all of the so called economic experts BEFORE the recessions and depressions they all seem to be such experts on how to fix?

But I should have paid closer attention to the title.
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Old August 6th, 2013, 12:05 PM   #10
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Yes, increased government spending to prevent the country and the world from sliding into a crippling depression will do that. Which begs the question, where are all of the so called economic experts BEFORE the recessions and depressions they all seem to be such experts on how to fix?
Your Nobel Laureate Paul Krugman said that no one knows if a Depression was coming. Your Fed Chairman Ben Bernanke went on television and said that there was no housing bubble. This guy has studied for years about the Great Depression and financial crisis involving systemic risk, and the thing that surprised him the most about the Financial Crisis, was the Financial Crisis itself.

http://youtu.be/MnekzRuu8wo

These are the people we are told to listen to when it comes to fixing the economy. On the other hand, industry experts like Peter Schiff and Kyle Bass saw the crisis coming from a mile away. Here is a primer for you:

Peter Schiff was right 2006-2007 - CNBC edition - YouTube


And Government spending hasn't prevented the economy from experiencing a crippling economy. It's already here. Cost of living rising, more consumer debt increasing, full-time jobs being phased out for part-time jobs, average employee hours shrinking, real incomes falling, producer prices increasing. The these things are consistent with an economy that is contracting, not growing or even improving.
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