U.S. Trade Deficit (from ATSNN)

Surprisingly the U.S. trade deficit narrowed in a report relaesed on November 10, 2004.



The Bush Administration's policy for free trade with tax cuts is working. More exports are the by-product of the policy. This new report proves that manufactured products from the U.S. will help expand the economy.

Related News Links:
story.news.yahoo.com

[edit on 10-11-2004 by ZeddicusZulZorander]

It's still the third highest trade deficit on record.
Only June and August were higher so I'm not sure if it's safe to say it's turning around yet.

Bloomberg
Hurricanes in September that restrained shipments of imported oil may have helped limit the effect of record prices. Further increases and a rebound in shipments will probably mean a wider deficit in October, posing a risk of further declines in the U.S. dollar, economists said.

``The September dip is welcome but will prove temporary,'' said Ian Shepherdson, chief U.S. economist at High Frequency Economics Ltd. in Valhalla, New York. ``There is no chance the overall deficit is turning down, but the rate of increase appears to be slowing.''

Since we import 12.2 million barrels of oil per day for domestic consumption we will have a large trade deficit for a long time to come. That is about 222 billion per year at $50 per barrel.

What about that $7.4 trillion national deficit? :\

Ah but the dollars are getting cheaper and therefore US goods get cheaper in the long run overseas.

Exactly what Reagan did, I would like to see a 1.50 eurro vs the dollar....


Link




[edit on 10-11-2004 by edsinger]

Originally posted by edsinger
Ah but the dollars are getting cheaper and therefore US goods get cheaper in the long run overseas.

- Hmm, if you weren't so reliant on imported materials in the first place that might work but you're just trading cheaper dollar finished exports for more expensive raw material and semi-finished good imports.

By the way; what]/i] export goods? What do you make the rest of the world is supposed to want in such quantity?

Shadow had this discussion on another thread and even in the area of computer stuff there is currently a plateau in demand as the world that can afford this stuff is 'glutted'. We don't want your ridiculous gas-guzzling car/SUV things even if you gave them away and we, like most of the world now - even airlines in the US - prefer our own Airbus aircraft.

Even the despots around the world domn't buy military kit like they used to even if we were all so naive to think that a good idea.....and so much of your military kit is so far up the ultra-high tech road you wouldn't want to sell that stuff - even if anyone else wanted to or could afford it.

Clearly, of course, you do export, but just where this turn-around is supposed to 'just' come from 'just' because the $ is devalued....well, I can't see it myself.

Exactly what Reagan did, I would like to see a 1.50 eurro vs the dollar....

- It's also the kind of policy followed in the UK in the mid-late 1960's and 1970's.

If you do nothing about the underlying credit and demand bubble that is sucking so many imports in in the first place the 'benefit' of this devaluation will simply be wasted (as with the previous one) and you will be right back where you started from but with your $ worth even less.

We even had a Prime Minister say on the night of the formal devaluation (they did things a little differently in 1967, Bretton Woods and all that) "this will not affect the � in your pocket"!.

It may not be noticed by the general public at first but this is no freeby. It will cost and keep on costing if you do nothing about the why.