U.S. August Trade Deficit Grows to $54 Bln; Goods Exports Slip

[papau]

http://quote.bloomberg.com/apps/news?pid=10000103&sid=auNFu6UcIZ8k&refer=us

U.S. August Trade Deficit Grows to $54 Bln; Goods Exports Slip
Oct. 14 (Bloomberg) -- The U.S. trade gap widened in August to $54 billion, the second largest on record, as oil imports reached the highest level ever and exports of goods slipped.

The deficit grew 6.9 percent from $50.5 billion in July, the Commerce Department said in Washington. The record was $55 billion in June. The deficit with China, a political sore spot for the Bush administration, set a record ($15.4 billion for the month, the yuan has been fixed at about 8.3 to the dollar since 1995). <snip>

The deficit was wider than median forecast of $51.4 billion from a Bloomberg News survey of 68 economists. The July deficit was initially reported as $50.1 billion. <snip>

A larger trade deficit subtracts from gross domestic product, on the assumption the imports replace goods made in the U.S. Increased consumer spending, including purchases of imports, contributes to growth, tempering the impact of a wider deficit. <snip>

[UpInArms]

1. hey papau - where are all those people that

have argued so vociferously with me about that weaker dollar making our exports more affordable and that is why this is so freakin' good?

Now that they have gone and done their stupid economic illogic, I really want them to explain it to me one more time.

:hi:

[papau]

2. The CW repeaters do seem silent :-) The dollar drop does give a

temp. boost to exports - as our lifestyle is moved down a few pegs.

But not if our Corporations try to max out profit by raising overseas prices!

[sweetheart]

3. Danger danger will robinson!

This extended fiscal ineptitude is costing all americans dearly,
as the dollar collapse is surely awaiting the outcome of the november
poll.

Every investment banker strategist out there in currencies is
watching closely, as if bush subverts another election, the dollar
is completely overvalued given the gross incompetence already
demonstrated. With such concrete evidence, expect a 20% dollar
devaluation across the board by spring 2005.

A kerry win will boost confidence in the dollar, and perhaps stem a
slide depending on what fiscal measures kerry puts in place, even
"ghosted" by his carefully chosen words on november 4th.

However, there is a deeply disconcerting problem, that the wall
street model is outdated, and that the microstructure of the economy
needs a massive diversification and an "upgrade" to compete in a
new age where "big" is not better, rather profitable and lean is
preferred. Its amazingly ironic for a nation institutionally paranoid
about soviet-style central planning to concentrate all its corporate
power and planning in to smaller and smaller groups on wall street.
The model is already proven to fail, and if the greed is left
unchecked, the whole economy will suffer. The blame lies with
the "M&A" scam industry, that has merged its way to incompetence.

The HP frankenstein says it all about value destruction. A once
series of viable competetive companies has been concentrated to
a tiny oligopoly where there no longer is any innovation, rather
lost jobs and destroyed value. Carly Florintina is no heroine, rather
a scam artist following the wall street quick buck theorem on
enriching yourself whilst destroying value. Bush is the pinnacle
of this ignorance, and need the whole bloody economy follow suit?

[AP]

4. That should kill the dollar today. But last time they had a report like...

...this, the next day there was some BS report the next day about a huge inflow of frgn currency in the US to buy something absurd -- services? I can't remember.

So look out for some "good" news tonight or tomorrow to stop too much blood from flowing...

[Zorra]

5. Kick

[UpInArms]

6. related article: Trade deficit soars as Americans buy Chinese cell phones,

Trade deficit soars as Americans buy Chinese cell phones, toys, TVs

http://www.signonsandiego.com/news/business/20041014-1324-economy.html

WASHINGTON – The trade deficit jumped to the second-highest level in history as surging demand for foreign oil swamped a small gain in U.S. exports, the government reported Thursday. America's trade gap with China hit an all-time high as retailers stocked up on cell phones, toys and televisions in preparation for Christmas sales.


The worse-than-expected trade performance in August – a deficit of $54 billion – represented a 6.9 percent widening from July's trade gap of $50.5 billion. The record monthly deficit was set in June at $55 billion.

Exports, helped by a rise in shipments of commercial aircraft and record foreign sales of American cars and auto parts, rose by a slight 0.1 percent to $96 billion in August.

However, this improvement was overwhelmed by a 2.5 percent surge in imports to a record $150.1 billion as America's foreign oil bill climbed to the highest level in history. The average price for crude oil jumped to a 23-year high of $36.37 per barrel.

<snip>

Even trade in services, normally America's strength in international markets, sank in August to a surplus of $3.4 billion, 19 percent below July and the smallest surplus since this trade series began in 1992. The big decline was blamed on U.S. television payments to broadcast the Olympic games.

...much more...