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US trade deficit at highest level ever.

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posted on Jan, 26 2005 @ 02:30 PM
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Originally posted by ShadowXIX
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 was talking about the creation of the country.
If you want to talk about entertainment culture there are many things you have "borrowed".....american football (rugby with padding).


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

Yeah, i was yet again talking about the creation of the country.


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.

Well alexander grahme bell was british (scottish really)
Internet was really started in sweeden (or is it pronouced svveeeden lol)
Most early games where british and one of the biggest sellers here and in the US GTA series was made and stil is by a scottish company.




posted on Jan, 26 2005 @ 02:47 PM
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devilswap,

The global Internet's progenitor was the Advanced Research Projects Agency Network (ARPANET) of the U.S. Department of Defense. This is an important fact to remember, because the support and style of management by ARPA was crucial to the success of ARPANET. As the Internet develops and the struggle over the role the Internet plays unfolds, it will be important to remember how the network developed and the culture that it was connected with.



posted on Jan, 26 2005 @ 02:52 PM
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Originally posted by devilwasp

Originally posted by ShadowXIX
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 was talking about the creation of the country.
If you want to talk about entertainment culture there are many things you have "borrowed".....american football (rugby with padding).


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

Yeah, i was yet again talking about the creation of the country.


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.

Well alexander grahme bell was british (scottish really)
Internet was really started in sweeden (or is it pronouced svveeeden lol)
Most early games where british and one of the biggest sellers here and in the US GTA series was made and stil is by a scottish company.



IMO there is a world of difference between rugby, football. But if we are on the topic of sports what about Baseball and basketball both popular in many countries and they are played exactly the same as they were created in the US.

The internet was it origins in DARPA a US DOD company when they created the ARPANET.
The first video game was invented at the Brookhaven National Laboratory in Upton, New York in 1958.

About the phone I meant to say cell phone,since the old land line phones seem to be going the way of the dinosaurs. Cell phones are sweeping the world and are indeed becoming apart of our culture.

[edit on 26-1-2005 by ShadowXIX]



posted on Jan, 26 2005 @ 03:04 PM
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Originally posted by cryptorsa1001
devilswap,

The global Internet's progenitor was the Advanced Research Projects Agency Network (ARPANET) of the U.S. Department of Defense. This is an important fact to remember, because the support and style of management by ARPA was crucial to the success of ARPANET. As the Internet develops and the struggle over the role the Internet plays unfolds, it will be important to remember how the network developed and the culture that it was connected with.


Yeah but it was the sweeds who came up with the idea. I m sure it was the sweeds but the US put it into action.


Originally posted by ShadowXIX
IMO there is a world of difference between rugby, football. But if we are on the topic of sports what about Baseball and basketball both popular in many countries and they are played exactly the same as they were created in the US.

They are two games but rugby and american football are related since american football is based on rugby.


The internet was it origins in DARPA a US DOD company when they created the ARPANET.
The first video game was invented at the Brookhaven National Laboratory in Upton, New York in 1958.

Yeah but I'm sure the sweeds had a hand in it from the start...i remember watching a program about it..


About the phone I meant to say cell phone,since the old land line phones seem to be going the way of the dinosaurs. Cell phones are sweeping the world and are indeed becoming apart of our culture.

Yes i agree it was america that made that.
Do you not think they are getting rather stupid....i mean the whole point of a phone is to talk to someone not text or take pictures or write an essay on it!


[edit on 26-1-2005 by devilwasp]



posted on Jan, 26 2005 @ 03:17 PM
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Originally posted by devilwasp

Yes i agree it was america that made that.
Do you not think they are getting rather stupid....i mean the whole point of a phone is to talk to someone not text or take pictures or write an essay on it!


[edit on 26-1-2005 by devilwasp]


Well I see future cell phones becoming a total media center, Internet,TV,Camera,Video games oh and it will be a phone too


I think we have Japan to thank for that though one of my friends dad had a early cell phone and it was about the size of briefcase you had to carry around and it was just a phone.



posted on Jan, 26 2005 @ 04:03 PM
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Originally posted by ShadowXIX

Well I see future cell phones becoming a total media center, Internet,TV,Camera,Video games oh and it will be a phone too


I think we have Japan to thank for that though one of my friends dad had a early cell phone and it was about the size of briefcase you had to carry around and it was just a phone.

LOL
why do you lot call them "cell phones"?



posted on Jan, 26 2005 @ 05:36 PM
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Originally posted by cryptorsa1001
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.


Yeah and why is that China isnt going well at the moment??
The Chinese currency is linked to the dollar, they are thinking of linking it with the euro because everyone knows the dollar is hopeless.
And when China abandones the dollar everyone will and then the US will be really in the #.

I wouldnt be suprised if this is exactly what the US goverment wants, then they can isolate themselves and say fuk you to the rest of the world and not pay the debths the owe. Then they will have to start producing all kinds of goods for own country only.This would mean the rest of the world will be in a economic catastrophy.the outcome??who knows, even in the best case scenario it would be very very bad.
US will come out of it a winner because they have a big technological and militairy advantage that is nowaday still hidden from the world.

They will make the US a facist totaliarian state that will reform US society completely.

Goal is to eventually dominate the world before this century.



posted on Jan, 26 2005 @ 05:46 PM
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Well is true China has openly said that they has lost their faith on the dollar and they have to protect their economy so they will be looking into the euro now.

So yes while US was counting on China to buy US goods china feels that they are losing money on the deals.

It looks like our onces proud dollar is a shame now.



posted on Jan, 26 2005 @ 06:57 PM
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motionknight, ibet i can tell if the floor you are standing on is flat. There will be drool coming out of both sides of your mouth if it is.

If the Us wanted to take over the planet they would not start by purposely crashing the us economy. Think about what you are about to post before you do it.



posted on Jan, 26 2005 @ 09:48 PM
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THE NATION
Asia's Stockpiles of Dollars Pose U.S. Economic Risks
By Tyler Marshall
Times Staff Writer

April 6, 2004

HONG KONG — A massive buildup of U.S. dollars held by Japan, China and other Asian countries is fueling increasing unease among analysts and policymakers, who fear it poses risks to the fragile American economic recovery and global financial stability.

Collectively, Asian countries hold foreign exchange reserves — mostly in dollars — valued at more than $2 trillion, nearly triple that of just seven years ago, according to the Asian Development Bank. Those dollar holdings continue to grow rapidly, with the Japanese and Chinese governments particularly heavy buyers.

Asian governments buy dollars because it helps boost their export-led economies. Snapping them up keeps the greenback's value high and the value of regional currencies low, giving Asian countries a vital competitive edge in foreign markets.

Though this strategy makes a Chinese-made toy or a Japanese TV set cheaper for Americans and other global consumers, it has serious side effects. The dollars that Asian countries rake in as payments for those exports further boost their already bloated reserves while the record U.S. trade deficit grows even larger.

But that's not all. Asia's dollar purchases also effectively finance the huge and growing U.S. budget deficit as central bankers in the region invest most of their dollars in U.S. Treasury bonds and other securities. They have done this with such gusto that Uncle Sam doesn't even have to offer higher rates to move the average $1.5 billion of Treasury securities it must sell each day to sustain the current year's deficit.

Without that demand, the United States would have to offer higher interest rates to lure buyers — a move that would drive up rates on mortgages, business loans and more.

That, experts say, is the danger.

Any significant drop-off in Asia's seemingly insatiable appetite for the greenback would trigger a rise in interest rates that could slow U.S. growth and depress a job market only now showing its first signs of recovery. "Right now, it is Asians who are helping keep U.S. interest rates low," summed up Kenneth Courtis, Asia vice chairman for American investment firm Goldman, Sachs & Co.

The connection between Asia's central bank policies and America's economic well-being stands as a startling — and, for some, unsettling — example of how the fates of people living oceans apart have become so closely intertwined by the forces of globalization.

In an age where an American thinks little of getting an update on a credit card balance from someone sitting in Bombay, it is now the Finance Ministry bureaucrat in Tokyo and the banker in Karachi who influence mortgage rates for homeowners in Phoenix or Des Moines.

Asia's "dollar habit" also poses other risks to Americans, experts say. By allowing the U.S. to pile up record deficits without having to pay the usual price of higher interest rates, Asia has effectively encouraged Congress and the Bush administration to amass even more debt.

If U.S. budget deficits continue to grow unchecked, they could, among other things, eventually endanger the government's ability to finance Medicare and Social Security programs once baby boomers begin retiring.

Though few economists believe it will go that far, they agree that bigger deficits could lead to tougher and more painful adjustments for Americans.

"The longer this goes on and the larger the debt becomes, the more likely it is that it will lead to a recession in the U.S.," declared Geoffrey Barker, chief international economist for Hong Kong & Shanghai Bank Ltd. in Hong Kong.

Lately, hints have emerged that Asian governments may be reviewing their positions. Foreign-currency traders report that the frenetic pace of Japan's dollar buying during the initial months of this year has eased noticeably during the last couple of weeks. And there are signs that some countries have begun to divert investments into their domestic economies rather than buying so many Treasury securities. But these movements remain small.

Historically, most foreign countries have held some dollar reserves to pay for imports and to serve as a cushion in time of crisis — much as a family would maintain a savings account. Asia's dollar reserves were already at an all-time high two years ago when the region's central banks began buying the currency to prop it up as it began to fall under the weight of the growing American deficits and uncertainty surrounding the war in Iraq.

Many Asian countries see dollar buying as a matter of economic survival — the price they must pay to keep the greenback high, their own national currencies low and their export goods priced competitively in a dollar-dominated world.

"From India to Japan, Asia adheres to a strategy of export-led growth and that requires an undervalued currency," noted Tim Condon, chief economist for ING Financial Markets in Hong Kong.

The strategy has worked. According to Federal Reserve statistics, the greenback lost 8.4% of its trade-weighted value against world currencies over the year ended in February, an amount that international economists suggest is about half of what it would have fallen without Asia's interventions.

Because its goods have remained cheap for Americans, Asia as a whole enjoys a large and growing trade surplus with the U.S.

Asian countries also have another incentive to accumulate dollars.

By amassing greenbacks, Asian governments could quickly convert that money into their own currencies, helping stabilize them in the event of a financial crisis. In this way, dollar reserves become a tool for avoiding a repeat of the speculative attack in 1997 that sent the Thai baht into a frightening tailspin and quickly spread throughout the region. Eventually, the International Monetary Fund was forced to step in and impose draconian measures as part of a massive bailout package.

The harsh medicine administered by the IMF turned out to be both economically ill-suited and politically disastrous, delaying recoveries and, in the case of Indonesia, leading to the fall of the nation's leader, Suharto.

"Politicians with a survival instinct vowed never again to be forced into a position where they had to deal with the IMF," noted Ifzal Ali, respected chief economist of the Asian Development Bank in Manila. "For them, large dollar reserves were a firewall to guard against this. It became an obsession."

Last month, Taiwan put the strategy into action. U.S. dollar holdings allowed Taipei to ride out the sharp sell-off of its local currency that accompanied a post-presidential election crisis. Central bank Chairman Perng Fai-nan told a legislative committee four days into the political turmoil that he had an "unlimited" ability to spend dollars to buy back the local currency from all those wanting to sell.

Even in Asia's poorest countries, dollar reserves have jumped. Pakistan, for example, which counted $535 million in foreign-exchange reserves at the end of 1996, boosted that to $10.6 billion at the end of last year. The pattern is similar in other countries.

In the first quarter of this year, Japan alone bought about $145 billion in additional dollars and recently won parliamentary approval to buy $360 billion before year-end. China last year added about $160 billion to its reserves. While nations keep their reserves in various currencies, roughly two-thirds of these holdings are believed to be in dollars.

At one level, this represents a very real loss of U.S. government control over the national currency, one with genuine national security implications. Any carefully organized dollar sell-off by these countries or a traumatic event that stampeded them into panic selling could send the dollar — and the global financial system — into chaos.

Such a scenario, however, is widely dismissed as highly improbable because central bankers and government policymakers in the region know that, as the world's largest international dollar holders, they would lose more than anyone from an attack on the American currency.

But there are growing reasons that Asian nations might want to pare their dollar habit, experts say.

As Asian economies continue to grow briskly and export growth begins to ignite domestic economic strength, many policymakers are coming to view huge dollar holdings as an inefficient way to use national wealth.

"The reserves now held [in Asian central banks] far exceed the optimal level," noted economist Ali. "It's only now dawning on policymakers that there's a very high cost to this."

Ali noted that Treasury bills offer some of the world's lowest rates of return — far below what fast-developing Asian economies could earn putting those dollars to work in their own economies. There is already evidence this may be starting to happen, albeit in relatively small amounts.

South Korea and Taiwan are reportedly preparing to invest some of their reserves directly into their domestic economies, and a major debate is underway in India about making better use of reserves that recently topped $100 billion for the first time.

"This is money that isn't working with any efficiency at all," said Deepak Lal, an international development specialist and economist at UCLA. "It's a real loss."

Even a slowing of dollar buying or a measured unwinding of reserves in Asia would be felt in the United States, which must sell such large volumes of dollars to finance a federal deficit projected at more than $500 billion this year.

While Ali has maintained that Asian countries should diversify their reserves more evenly among a basket of currencies, central bankers claim there are few choices. They say the yen is not an option because it effectively shadows the dollar, while the stability of Europe's euro remains unproven after barely two years in circulation.

"At the moment, there's no way out of the dollar," explained Rafael Buenaventura, governor of the Central Bank of the Philippines.

Because of this, Asia's dollar buying continues despite mounting disquiet about the buildup.

If Japan moves ahead to buy the additional $360 billion recently authorized by parliament, it would push that country's dollar reserves above $1 trillion.

That prospect makes some Japanese analysts nervous.

"They've accumulated such a huge amount [of dollars] already that it will be very difficult to sell them quickly," Sayuri Kawamura, chief researcher at the Japan Research Institute in Tokyo, said of the government. "It takes time [and] I'm afraid it will be too late once they notice, or if they miss the timing, to start selling."

At some point, economists are convinced, the U.S. will be forced to take corrective action to rein in its deficits. But these experts also believe the political costs are probably too high for the administration to act on its own prior to the November election.

Still, they stress that developing a plan that can steer the world economy through an orderly adjustment must be among the first tasks for whoever resides in the White House next year. A delay well into the year could easily undermine confidence in the greenback, spook central banks in the region and possibly start a wave of uncontrolled dollar selling, the experts say.

"Eventually, the United States will have to address the deficits," Buenaventura said. "Once this happens, things can get back to normal. Meanwhile, Asia can't afford to let the dollar drop further."



posted on Jan, 26 2005 @ 10:10 PM
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That was from the 6/04, now after that the increase on deficit and borrowing by the administration keep on growing and the warnings by the international community got stronger.

Right now Europeans are trading their American stocks and they are not investing as much, since august. China is ansy about the dollar now.

It has gotten increasingly worst since April last year.



posted on Jan, 27 2005 @ 08:46 AM
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Marg6043, as stunning as it may seem foreigners are still willing to invest in America. Even though it seems bad it must still be better than most other places. China gets a lot of investment but think how much more they would get if they had more of a democracy. Here is part of an article article that I found on the net.

"But America sold more than enough of its assets abroad to make up the difference. Net inflows of capital surged to $81 billion in November, the Treasury announced on Tuesday January 18th, up from $48.3 billion the month before."

One thing to remember is that after 9/11 alot of capital was pumped into the american economy (1% rates). I believe that as interest rates go up the trade deficit will go down. Just my opinion.



posted on Jan, 27 2005 @ 09:59 AM
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Originally posted by cryptorsa1001
motionknight, ibet i can tell if the floor you are standing on is flat. There will be drool coming out of both sides of your mouth if it is.

If the Us wanted to take over the planet they would not start by purposely crashing the us economy. Think about what you are about to post before you do it.


The reason to crash the world economy(and their own)is that US has the capacity to recover the quickest and hold the militairy and technological advantadge they have on fast growing economies like China and India which will catch up with the US and even outsprint the US on those areas if the US plays fairly.
This is exactly the point im making, the US knows that they their wealth is built on quicksand, their ecoonomy is one big farce which will eventually collapse, and especially now the dollar is gonna fall this would be the perfect timing to kick in their plan.

Its seems like a drastic plan, which it is, but in the eyes of the neocons its a necessary evil, it has to become worse before it can get better.
The wealthy wont be the ones suffering in this scenario, so it isnt really that big a deal for them.



posted on Jan, 27 2005 @ 10:14 AM
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motionknight, I am interested so please do explain further how it benifits America to crash its own economy.



posted on Jan, 27 2005 @ 03:24 PM
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motionknight, I am interested so please do explain further how it benifits America to crash its own economy.


He said 'the wealthy', not America in general. It benefits the wealthy.

If you control a financial market, then YOU determine when it will be shaken. To profit from a dropping dollar or plunging DJIA is easy, you just have to know when that fall will occur. You can simply short the index all the way down and win big. Financial markets are like a huge boat deck. If you are nearest the railing when the deck tilts, you can grab it and live while everyone else slides down the deck to their doom. When the market 'corrects' itself, everything's cheap (including human life) and you've got the buying power.

In the scenario MK describes, only the poorest 80% will die/starve/suffer. The rich will be living as kings. Debauched kings. They will not care if the US becomes a third world country with jackbooted thugs, ruined topsoil and polluted rivers.

There really is no other way to explain the purposeful stupifaction of the American masses regarding credit, money, savings etc. If the people at the top cared about America in general, they would not encourage the herd to buy on credit and lease trvial items, etc. They would be encouraged to avoid banks and lending.



posted on Jan, 27 2005 @ 03:40 PM
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Originally posted by smallpeeps

In the scenario MK describes, only the poorest 80% will die/starve/suffer. The rich will be living as kings. Debauched kings. They will not care if the US becomes a third world country with jackbooted thugs, ruined topsoil and polluted rivers.



The rich would indeed care what happens to America because they live here do you really think their safe in their big mansions in a third world hell hole. All the money in the world wont save you when a mob of armed citzens comes a calling. Just ask Marie Antoinette how much good her money and power did when the masses got pissed.

The rich have so much to gain from the status quo and so much to loss by wreaking it.

The US has by far the largest number of billionaires living in it 313, not exactly the smartest thing to do if you plan on turning it into a third world country. You really see all the billionaires lining up to live in places like Africa.



posted on Jan, 27 2005 @ 05:30 PM
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The rich already live like kings. The topsoil is already depleted so now they have to use chemicals to get good yields. Most of the rivers are already so polluted that the fish have cancer and other nasty diseases.

neoconservatives are characterized by an aggressive stance on foreign policy, a lesser social conservatism, and weaker dedication to a policy of minimal government.

wealth·y
1. Having wealth; rich. See Synonyms at rich.
2. Marked by abundance: a wealthy land.
3. Well supplied: wealthy in compassion.

I myself view the term neocon as someone that is trying to project the power of America making it stronger and wealthier. Purposely hurting the economy does not fit in with neoconservative’s plans.

MK, mentioned the neocons as wanting to crash the economy and said that the wealthy would survive. I inferred that MK meant neocons were wealthy so he used the words interchangeably.



posted on Jan, 27 2005 @ 06:04 PM
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One of the greatest burdens on the USA's economy is its ridiculously complicated tax code. Between the capitalists and the socialists handing it back and forth, it's grown into a monstrosity with so many provisions, restrictions, and loopholes that many companies end up spending large portions of their profits on tax compliance services. The economy is being strained close to the breaking point, but we take care of the tax system and the IRS, it might be saved.



posted on Jan, 27 2005 @ 08:14 PM
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Originally posted by cryptorsa1001
The rich already live like kings. The topsoil is already depleted so now they have to use chemicals to get good yields. Most of the rivers are already so polluted that the fish have cancer and other nasty diseases.

neoconservatives are characterized by an aggressive stance on foreign policy, a lesser social conservatism, and weaker dedication to a policy of minimal government.

wealth·y
1. Having wealth; rich. See Synonyms at rich.
2. Marked by abundance: a wealthy land.
3. Well supplied: wealthy in compassion.

I myself view the term neocon as someone that is trying to project the power of America making it stronger and wealthier. Purposely hurting the economy does not fit in with neoconservative’s plans.

MK, mentioned the neocons as wanting to crash the economy and said that the wealthy would survive. I inferred that MK meant neocons were wealthy so he used the words interchangeably.


Its not as simple as you state it....

I think the neocons plan is too let the world economy crash and reform the US legislation, market and economy and society. They will isolate their market (minimum of import, start producing all kinds of goods for own market) cause this is one of Americas biggest weaknesses.
The world be in turmoil over the biggest economic crash in history, world bank will implode, stocks will plummet......etc etc etc and all worldly debths would be whiped clean.
This scenario will be much more devastating for mass exporting countries that are now growing rapidly, like China and India. Europe will loose its strong euro and economic power.
This is exactly what the neocons want, to disrupt the rapidly growing economies of China and INdia, to make the technological and militairy advantadge that they hold over them even greater by disrupting their economies while restructering their own economy to be more effective and selfsufficient.
The US will get the arms factories going full steam which will be used to give the new economy a boost that it needs (proven trick by Hitler)
and holding on to most of the Oil in the middle-east( Iraq,Iran,Syria), thus hold power over the countries that arent US friends, like China North-Korea.

If the US stays on the normal track, it will loose its geological,economic and military supremacy to countries like China and iNdia in 20 to 40 years time.
Neocons worst nightmare i guess.......



posted on Jan, 27 2005 @ 08:42 PM
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Well the banks have crashed enonomies before on purpose so I gues it is possible to crash the entire world economy. I think there are better ways to achieve the same goal without destroying the american economy but hey I am just a simple man without any inside info on what their real plans are so what do I know.



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