Breaking News: US Trade Gap Shrinking

[krazykarl]

"One of the few bright sides of the global recession has been a steady improvement in the U.S. trade deficit. After expanding to as much as $68 billion a month in 2006, the trade gap shrank to just $27 billion in June.

Imports have fallen in 10 of the past 11 months, a reflection of weak U.S. demand for foreign-made goods. Meanwhile, U.S. exports also fell, but not as rapidly as imports did.

In May and June, exports began to recover. In real terms (adjusted for price changes), exports rose at a 16% annual rate in the May and June, after dropping at a 60% annual rate around the first of the year. "

 

[Eight]

Wow, a 60% drop in exports in a short period of time!!! Is there a precedent for that? Maybe when peace broke out after WW2 or something but otherwise, I can't think of a precedent...

 

[nazzdack]

Quote from krazykarl:
"One of the few bright sides.......

Do treasury securities count as U.S. "exports" or not?

 

[makloda]

Quote from krazykarl:

Imports have fallen in 10 of the past 11 months, a reflection of weak U.S. demand for foreign-made goods.

"Weak" US demand for imports or rather "mean reverting" US demand for imports

 

[SNBthetrue]

Quote from nazzdack:

Do treasury securities count as U.S. "exports" or not?

lol

 

[krazykarl]

Quote from nazzdack:

Do treasury securities count as U.S. "exports" or not?

Nope.

 

[aegis]

The gap is shrinking because Americans are buying less shit from China (they can no longer afford to). Hardly a good indicator, as much as the media would like to spin in.

 

[krazykarl]

Quote from aegis:

The gap is shrinking because Americans are buying less shit from China (they can no longer afford to). Hardly a good indicator, as much as the media would like to spin in.

It's shrinking because we're exporting more AND buying less shit from China. CPI numbers show that we're buying more of our own shit.