As reported in an article from the LA Times, dated October 17th, 2009, The port of Los Angeles, and Long beach combined, suffered it's lowest record
for imported goods in the month of September, in 9 years.
Now, what does all that mean? This is a further indication of an economy that isn't going to recover anytime soon. Also troubling, is the fact
that a substantial number of local trade jobs have been lost, due to the lack of import cargo. Many of these jobs will never come back. we seem to be
hearing a lot of that lately.
We all need to remember, that as far as the economy is concerned, everything is connected. Stories such as this thread have a ripling effect
across the whole nation. This record loss of imports is another nail in the coffin of the US economy. The continuation of lower imports only backs up
what we as consumers already knew. Nobody's buying anything, so imports will probably continue to get slower.
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reply to post by mrpotatohead
About time!
The huge imbalance between imports and exports that has persisted for the longest time in the United States has never been a sign of a healthy
economy.
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The strength of the US dollar is probably going to decline over time due to the Fed's policies. Along with this decline, there will be a decline in
the standard of living in the US - in my view a rather massive decline. Personally, I don't think most in the US are mentally prepared for it - and
this will result in a lot of social unrest.
The loss of value of the dollar will mean imported goods will increase in costs relative to locally manufactured goods, this should stimulate local
manufacture of goods for the domestic, and export market (over time) and reduce the overall trade deficit that the US has sustained.
The US has been able to sustain huge trade deficits because it has two economic advantages, firstly its currency has been the world reserve currency -
so inflating that currency is like a tax on the rest of the world, secondly they have been able to benefit from having basically all oil sold in US
dollars (at the point of a gun) - this has basically meant that oil in the US is free, because they just print paper and trade it for oil.
Both those situations are coming to a close - that means the US will actually have to pay for itself - rather than having a free ride at the expense
of the rest of the world.
In the long term it is a healthy thing - as service jobs will disappear and manufacturing jobs will replace them. The transition however should be
expected to be long and painful.
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reply to post by mrpotatohead
Yeah I can see that people who made a living with imports will find it harder to make a living. They need to start getting into the exporting side of
things.
In Dollar’s Fall, Upside for U.S. Exports
But there is also an upside: a weak dollar could prove beneficial to the American economy by aiding long-suffering manufacturers, rebuilding a
stronger industrial base and lifting exports even if it makes life harder for trading partners around the world, especially in Europe.
“As long as it doesn’t crash, a gradual, orderly decline is healthy,” said C. Fred Bergsten, director of the Peterson Institute for
International Economics. “The dollar went up 40 percent between 1995 and 2002, so this is a necessary rebalancing.”
US exports rise more than expectedNEW YORK - The
US trade deficit unexpectedly narrowed in August as exports climbed to the highest level of the year and oil imports plunged.
The gap fell 3.6 percent to $30.7 billion from a revised $31.9 billion in July, the Commerce Department said yesterday in Washington. The 0.2 percent
increase in demand for American-made goods abroad would have been larger excluding a drop in aircraft shipments, which tend to be volatile.
More than $2 trillion in government stimulus programs are reviving demand from Asia to Europe, ensuring that US factories benefit from growing sales
overseas as the dollar weakens. Production gains and the need to replenish depleted inventories mean imports will probably also grow, preventing the
deficit from narrowing further.
Dollar's Drop Has Aided U.S. Trade DeficitThe
dollar has been declining relative to other major currencies for months, and this week there has been a wave of worry that foreign investors might
curtail their investments in dollar assets. But so long as the slide remains gradual and orderly, as it has so far, economists generally view it as a
plus for the U.S. economy. While it makes imported goods such as oil more expensive, it makes U.S. exporters more competitive, helping rebalance an
economy that has been skewed away from exports for years.
In August, the gap between what the United States exports versus its imports narrowed to $30.7 billion, from $31.9 billion, as exports rose and
imports fell, the Commerce Department said Friday. The dollar rose 0.5 percent versus other major currencies Friday, as investors interpreted a
Thursday night speech by Federal Reserve Chairman Ben Bernanke to suggest that the central bank could raise interest rates in the not-too-distant
future.
US high-tech trade deficit improves, still long way to
go20.10.2009 kl 05:34 | IDG News Service
A A A
Well it might not be time to break out the bubbly just yet but US high-tech exports totaled $223 billion in 2008, up one percent from $220 billion in
2007 continuing a trend that has seen tech exports rise 38% since 2002. The number represents the single largest export sector in the country,
accounting for 17% of the total US exports.
Ford Said to Make SUV in Kentucky to Export to Europe Oct. 22
(Bloomberg) -- Ford Motor Co. is moving production of a small sport-utility vehicle from Europe to the U.S. to take advantage of lower labor costs and
the weaker dollar, according to three people familiar with the plan.
Ford in October 2011 will shift the Kuga model to Louisville, Kentucky, from a factory in Saarlouis, Germany, said the people, who asked not to be
identified because the plan is private. As many as 80,000 a year will be exported to Europe, one of the people said. The dollar has fallen 18 percent
against the euro this year, lowering the cost of U.S.-made goods.
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reply to post by honkusbobo
I agree. Maybe this will provide the incentive for Americans to actually try to be more self-sufficient. Maybe create some jobs here at home that
aren't just some BS service jobs. Maybe manufacture some products that are superior to other products produced outside the U.S. that actually might
have, say, the Chinese, for example, consumers who would willingly want to spend money for these superior products?
I visited Israel last year, and the folks I visited asked me for some token gifts of clothing made in the U.S. I couldn't find any. Yes, I live near
a rather small city, but all I could find as far as "American" clothing were items made in South America. Wait. I did find a shirt for the girl in
that family that was made in the U.S. It was the only one in the store. And it had written on it, "I am a Princess". 
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