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BUSINESS: U.S. Trade Deficit Surges to All-Time High

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posted on Jan, 12 2005 @ 12:38 PM
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Catching analysts by surprise, the U.S. trade deficit hit an all time monthly high in November reaching $60.3 billion dollars. Their breaks the record set only a month before of $56 billion. This figure represents imports from everything including oil and farm products.
 



story.news.yahoo.com
WASHINGTON - America's trade deficit soared to an all-time high of $60.3 billion in November, reflecting record levels for imports of everything from oil and consumer goods to farm products, the government reported Wednesday.

The Commerce Department said the November deficit was up 7.7 percent from an imbalance of $56 billion in October, which had been the previous monthly record. The new record caught private economists by surprise. They had been forecasting a slight narrowing in the November trade gap.


Please visit the link provided for the complete story.


A house of cards may be building. Not many people think that we can keep importing good and products at such record rates. Add into this the growing budget deficit and we may the perfect recession storm brewing. The latest rumors of Pentagon cuts may be the tip of the iceberg to get the federal deficit under control. Also, not propping up the dollar will only work in the short term and does nothing to address the massive imbalance with China. China continues to aggressively peg its currency in support of its economy making it very difficult to export good there.

[edit on 1/12/05 by FredT]




posted on Jan, 12 2005 @ 12:42 PM
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I posted this in another thread but will repost it here:


The deficit is certainly growing in spite of the lower US dollar, which people have been saying will reduce the trade deficit.

[edit on 12-1-2005 by AceOfBase]



posted on Jan, 12 2005 @ 12:52 PM
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So whos making record exports thanks to our growing trade deficit? If its China more proof that the US and China will not go to war anytime soon. Its not good business to go to war with your number one custumor



posted on Jan, 12 2005 @ 12:58 PM
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One of the problems is that the biggest exporter to the US is China who has pegged the Yuan to a really low level. Even the EU has complained as well about this. It makes it impossible to really put any dent in the level at all.



posted on Jan, 12 2005 @ 01:11 PM
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It's not just China though.
The deficit with Japan, the EU and Canada all rose in November.
The Trade deficit with China was actually lower in November than it was in October (but still high).

Exports, Imports, and Balance of Goods By Selected Countries and Areas--2004

Canada:
October Balance -5,721
November Balance -7,298 (R)

China:
October Balance -16,776
November Balance -16,631

European Union (25)
October Balance -9,335
November Balance -10,460

Japan

October Balance -5,862
November Balance -7,286

The deficit with OPEC was actually down in November:

OPEC:
October Balance -7,196
November Balance -6,937



posted on Jan, 12 2005 @ 01:26 PM
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One of the problems is that the biggest exporter to the US is China who has pegged the Yuan to a really low level. Even the EU has complained as well about this. It makes it impossible to really put any dent in the level at all.


If you look at the PDF in my above post, you'll see that even though the trade deficit with China is higher than the deficit with the EU and Canada, the amount of goods imported from China is less than those countries.


Nov Imports from Canada: 22,698 million
Nov Exports to Canada: 15,400 million

Nov Imports from China: 19,606 million
Nov Exports to China: 2,975 million

Nov Imports from the EU: 25,013 million
Nov Exports to the EU: 14,553 million

Nov Imports from Japan: 11,535 million
Nov Exports to Japan: 4,249 million

The problem is that China isn't buying US products the way Canada and the EU are doing.


[edit on 12-1-2005 by AceOfBase]



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