US trade deficit at highest level ever.

September was a good month but October's deficit of $55.5 billion soared to the highest on record.

census.gov
* The goods deficit with China increased from $15.5 billion in September to $16.8 billion in October. Exports increased $0.1 billion (primarily soybeans) to $2.9 billion, while imports increased $1.3 billion (primarily computers; toys, games, and sporting goods; TV�s and VCR�s; and computer accessories) to $19.7 billion.
* The goods deficit with the European Union (25) increased from $7.7 billion in September to $9.3 billion in October. Exports increased $1.1 billion (primarily civilian aircraft, pharmaceutical preparations, nuts, and soybeans) to $15.4 billion, while imports increased $2.8 billion (primarily passenger cars, other petroleum products, artwork, civilian aircraft, and fuel oil) to $24.7 billion.
* The goods deficit with Mexico increased from $3.8 billion in September to $4.4 billion in October. Exports increased $0.5 billion (primarily other petroleum products and soybeans) to $10.1 billion, while imports increased $1.0 billion (primarily crude oil and passenger cars) to $14.5 billion.

So much for the weak dollar reducing the trade deficit.
At least everyone is buying up those soybeans.
$638 million in soybean exports just in October.
Not something you generally think of when you think of US exports.

It's reached another new record this month.
US Nov Trade deficit hits record of $60.3 billion.

What's really odd this time, is that exports were actually down in November.
They had been going up.

census.gov
Goods and Services

Exports decreased to $95.6 billion in November from $97.8 billion in October. Goods were $66.5 billion in November, down from $69.2 billion in October, and services were $29.0 billion in November, up from $28.6 billion in October.
*
Imports increased to $155.8 billion in November from $153.8 billion in October. Goods were $130.7 billion in November, up from $129.3 billion in October, and services were $25.2 billion in November, up from $24.5 billion in October.
*
For goods, the deficit was $64.1 billion in November, up from $60.1 billion in October. For services, the surplus was $3.8 billion in November, down from $4.1 billion in October.

*Note* the graphic in the first post is updated to include November's figures.

The accounting for the trade BS does not account for services. The beanhead see a palet of Software worth Thousands as a palet of "plastic" worth $200. It also does not account for overseas divisions of the same company shipping items between factories. When it is updated for reality then it will mean something.

Originally posted by DrHoracid
The accounting for the trade BS does not account for services. The beanhead see a palet of Software worth Thousands as a palet of "plastic" worth $200. It also does not account for overseas divisions of the same company shipping items between factories. When it is updated for reality then it will mean something.

It does account for services and the services are mentioned in my quoted text.
Here's the PDF version:

U.S. INTERNATIONAL TRADE IN GOODS AND SERVICES
Services
Services exports increased $0.4 billion from October to
November. The increase was more than accounted for by
increases in travel, passenger fares, and other private services
(which includes items such as business, professional, and
technical services, insurance services, and financial services).
Changes in the other categories of services exports were small.

Here's the a PDF that shows the services exports:
www.census.gov...


[edit on 12-1-2005 by AceOfBase]

maybe the guy who was ranting doesn't read PDFs...

People need to realize that the US doesn't exactly produce much of anything the rest of the world wants. Maybe its because Americans depend so heavily im imports because its all they can afford to buy?

Originally posted by Indy
People need to realize that the US doesn't exactly produce much of anything the rest of the world wants. Maybe its because Americans depend so heavily im imports because its all they can afford to buy?

American culture is the most copied in the entire world. One of our major exports is entertainment in all of it various forms.

Our technology is unmatched by anyone in the world.

Our medicines are copied and counterfeited and sold in the black market.

Our Great Plains are the breadbasket of the world.

All of the above, and much much more are the desire of the rest of the world.

We have one of the highest per capita incomes and standard of living in the world.

So we can't afford to sell shoes at $75/pair that can be produced in China for $2/pair. Want to live in China?

Your statements are pure bunk.

Originally posted by jsobecky

Originally posted by Indy
People need to realize that the US doesn't exactly produce much of anything the rest of the world wants. Maybe its because Americans depend so heavily im imports because its all they can afford to buy?

American culture is the most copied in the entire world. One of our major exports is entertainment in all of it various forms.

Our technology is unmatched by anyone in the world.

Our medicines are copied and counterfeited and sold in the black market.

Our Great Plains are the breadbasket of the world.

All of the above, and much much more are the desire of the rest of the world.

We have one of the highest per capita incomes and standard of living in the world.

So we can't afford to sell shoes at $75/pair that can be produced in China for $2/pair. Want to live in China?

Your statements are pure bunk.

But not for long buddy!its alredy changing, China can make all that stuff in much more quantity and sell it much much cheaper.
Its the beginning of the end for the US economy.
Start getting use to poverty because the now middle and low class families will be in a great deal of # when dubya has finished(not to mention old folks and sick people).

But go right ahead and believe the US is still the gratest nation in the world

I have heard doomsday predictions since I can remember. so far none of them have happened. I remember hearing that Japan would over take the Us and all would be unemployed living in the street. Look what has happened, the US still sits on top of the heap. Take a look at this chart. The only country that comes close to exporting as much as the US is Germany. China has problems of its own. It is now starting to have a trade deficit of its own. It is not even close to what the US has but they still have a deficit. Something like 8 billion in the last qaurter for 2004.

Have you guys ever thought that maybe we have a trade deficit because we buy so much (we can offord to)that we can not produce everything that we need in the states? I honestly have not found an answer for this but one thing I do know is that we have had a trade deficit since I think the Nixon days. The trade deficit does not take into account all of the details. An example: furniture, if a furniture dealer can buy 2 tables from china for the price of 1 made in the USA and sell them at a %50 profit he is making more on his capital. More people can afford the tables so he sells more which means he needs to hire more people making up for the jobs lost in the furniture making business. I do not know the answer but I think sooner or later we will have an answer. Are there any economists out there that can shed some light on this issue.

If the US trade deficit reports are 'bunk', then we are countries converting their reserves into Euros...of course, it is a slow progression, but does anyone really think pragmatic bankers will not turn to the Euro if the American dollar is so apparently strong?

Originally posted by motionknight


But not for long buddy!its alredy changing, China can make all that stuff in much more quantity and sell it much much cheaper.
Its the beginning of the end for the US economy.
Start getting use to poverty because the now middle and low class families will be in a great deal of # when dubya has finished(not to mention old folks and sick people).

But go right ahead and believe the US is still the gratest nation in the world

China has along way to go in standard of living they make products for dirt cheap because they pay there workers crap wages. I really hear of loads of illegal and legal immigrants getting in line to get into China

Well there is the people trying to get the heck out of N Korea

by 2020 China will apparently have 45% of the population in the middile class ($7500 per year)... and a further 15% in the higher classes.

That's not too bad when you consider how far money goes in China and that the current average urban wage is only $1600 a year... rural is around $1100

[edit on 26-1-2005 by Lucretius]

So we can't afford to sell shoes at $75/pair that can be produced in China for $2/pair. Want to live in China?

This makes the point that American wages are idiotically inflated. Have you seen how much unionized GM workers make for simple tasks like driving forklifts and doing inventory?

If you step back from your pollyannic statements, you'll see two different nations. China, is a disciplined, purposeful nation who have always been poor but who are quickly becoming the BEST capitalists in the world. Note I didn't say Democrats. Capitalism and Democracy are not the same thing.

Meanwhile, America is full of uneducated retards who do not read and who get their news from Fox television. If Joe Six-Pack were to look at the above quote, he'd say, "Well, American workers are worth more!" He is wrong, entirely.

The problem is, we are encouraging the rest of the world to unite against us, economically. If they stop buying our treasury notes, yes, they will suffer with us as the dollar declines, but the American adage, "Well, where else are these idiots going to go for a world-petrol currency?" has changed with the rise of the Euro. There will be options for those countries. The only option the US will have is war and the creation of war. War and making/selling weapons is our lifeblood. Well, that and soybeans.

I think we underestimate how much the rest of the world wants to see us suffer. To say that our trading partners will float the dollar for the next four years while we 'Democratize" the middle east is wishful thinking, in my opinion. Meanwhile every television commercial encourages each American to "Cash in your home equity!"...

Some people can't conceptualize rain until it falls on their heads.






[edit on 26-1-2005 by smallpeeps]

[edit on 26-1-2005 by smallpeeps]

[edit on 26-1-2005 by smallpeeps]

Thanks Ace for bringing the subject, I was just in the internet looking for information on the trade deficit, and I am glad you open this thread.

Way to go.


Yes the deficit is growing and is an alarming concern on the international community.

Now, there are indications that the world may be starting to lose patience with America's import profligacy and buildup in debts to foreigners.

US expanded NAFTA to include Australia, and Bush mentality is that now American companies can relocate to Australia and that the empty plants will bring more jobs to Americans here in the US. Now what in the heck is that?

Federal Reserve Chairman Alan Greenspan said, "We cannot depend on imported capital, that is, a current account deficit, to offset low domestic savings indefinitely."

On 25 July 2001 former Federal Reserve Chairman Paul Volcker told the Senate Banking Committee hearing on risks of growing balance of payment deficit, "We are a debtor nation with nil personal savings and are absorbing a significant portion of other countries savings. These huge and growing external deficits are symptoms of imbalances in the national economy and the world economy that cannot be sustained."

Our president does not understand that you can not do all he is doing wagging wars on “terror” and then trying to borrow money to get out of debt, it just doesn’t work that way.

Busd is a liar to the American people while given them a false hope of “tax cuts” but the thing is that at the end, he “keep on the Borrow and Spend, and later our grandchildrens will be the ones to be tax to fix the problem.

The more bush borrow the more our deficits grow and our dollar grows thin. You can not finance everything on money that is not there, and then expect to relay on foreign money to help the economy is not happening.

We are living on an illusion that every thing is ok is not.

The problem is going to be to the point that no even Democrats will be able to fix the problem even if they are in power.








[edit on 26-1-2005 by marg6043]

Originally posted by jsobecky
American culture is the most copied in the entire world. One of our major exports is entertainment in all of it various forms.

Well personally myself i would say you copied the british and french instead of the other way around....just a note.

Our technology is unmatched by anyone in the world.

Really, here was I thinking japan was the leader in electronics and I thought we invented hover tech and here i thought the germans invented the rocket and here i thought the russians got the first man in space.....wow I have been lied to my entire life.

Our medicines are copied and counterfeited and sold in the black market.

Cough paracetimol cough

Our Great Plains are the breadbasket of the world.

Cough china cough
[uote]
All of the above, and much much more are the desire of the rest of the world.

Cough bs cough.

We have one of the highest per capita incomes and standard of living in the world.

Really so when i drove outside orlando and seen the slums they where just an illusion?
We have nothing like that here in the UK but you seem to be plagued with it.

So we can't afford to sell shoes at $75/pair that can be produced in China for $2/pair. Want to live in China?

If you notice your shoes come from china....

Which is the whole BS idea of the middle man.
If we had true free trade then poverty would be sorted.

"Really so when i drove outside orlando and seen the slums they where just an illusion?
We have nothing like that here in the UK but you seem to be plagued with it. "

All countries have concentrated areas of poor peole.
A friend of mine came back from London recently. He said he could not wait to get back home. He said that most people live in government housing, were depressed and had a feeling of no hope and that they drank all the time because they had no work. Yeah yo do not have slums just government housing that appears to be better than a slum. Good luck to you!!!!

Big trade deficit coupled with a record budget deficit on the way.

Guess what ? This equals cut backs and possibly higher taxes. Best part, guess where the money has gone ? Guess where the money has gone instead of investing in local industry ? Guess then to whom this money has gone ?

It's getting harder by the day for Dubya.

Originally posted by cryptorsa1001
All countries have concentrated areas of poor peole.

In every city?

A friend of mine came back from London recently. He said he could not wait to get back home. He said that most people live in government housing, were depressed and had a feeling of no hope and that they drank all the time because they had no work. Yeah yo do not have slums just government housing that appears to be better than a slum. Good luck to you!!!!

Well if your "mate" actually lived here and knew the people then you might understand it.
I wont lie to you and say I know what its like to live there but i damm well know enough people there to know a little.
The houses are okay, sure they are a bit rough and a bit dodgy but its still a house and they recieve social security and free health care.

Originally posted by devilwasp

Originally posted by jsobecky
American culture is the most copied in the entire world. One of our major exports is entertainment in all of it various forms.

Well personally myself i would say you copied the british and french instead of the other way around....just a note.

I would have to disagree with you on this one America was created its own entertainment culture that is all its own. Jazz and Blues Music which much modern music has its orgins in is distinctly American.

I mean I see Japanese and German Rapper on TV that didnt come from France or the UK.

Even things like telephones and video games heck even the computer your using and the internet were all connected too, have its origins in the US.

Yeah but the Telephone was invented by a Canadian heh. Alexander Graham Bell. Pa Bell couldn't get any funding here so he want south. I really hope our politicians find a way to reduce or reverse the brain drain.

EDIT: Actually he was Scottish-Canadian.

[edit on 26-1-2005 by sardion2000]