Comments on: Trade Deficit Plunges http://dailyreckoning.com/trade-deficit-plunges/ Entertaining Ideas on the Economy, Markets, Gold, Oil and Investing Strategies. Sun, 21 Mar 2010 19:07:45 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Brother in mind http://dailyreckoning.com/trade-deficit-plunges/#comment-5351 Brother in mind Sun, 12 Apr 2009 17:22:11 +0000 http://dailyreckoning.com/?p=14481#comment-5351 Most sharp and witty market commentary since quite some time. Seems writing frome home suits you, Chuck. Would love to read more from what you call your conspiracy theory. Most sharp and witty market commentary since quite some time. Seems writing frome home suits you, Chuck.
Would love to read more from what you call your conspiracy theory.

]]> By: Pete Murphy http://dailyreckoning.com/trade-deficit-plunges/#comment-5235 Pete Murphy Sat, 11 Apr 2009 13:07:27 +0000 http://dailyreckoning.com/?p=14481#comment-5235 Regarding the huge drop in the U.S. trade deficit, a big decline in imports was no surprise, given the state of the economy. But what was a big surprise is the rise in exports. Since our falling imports have eroded economies in the rest of the world even faster than ours, it would be reasonable to expect that U.S. exports would have fallen at least as much as imports (especially considering that there has been no meaningful shift in the differential between import prices and export prices). Instead, exports actually rose by $2.6 billion. I believe this is evidence of a concerted effort being undertaken by the rest of the world to boost imports of American goods in an effort to head off protectionist measures. These countries also recognize that it was large imbalances in global trade, specifically the huge U.S. trade deficit, that collapsed the global economy. The question is whether they'll be able to keep up these imports of American goods when the U.S. economy rebounds and U.S. imports rise, preventing another destructive imbalance in trade. Pete Murphy Author, "Five Short Blasts" Regarding the huge drop in the U.S. trade deficit, a big decline in imports was no surprise, given the state of the economy. But what was a big surprise is the rise in exports. Since our falling imports have eroded economies in the rest of the world even faster than ours, it would be reasonable to expect that U.S. exports would have fallen at least as much as imports (especially considering that there has been no meaningful shift in the differential between import prices and export prices). Instead, exports actually rose by $2.6 billion.

I believe this is evidence of a concerted effort being undertaken by the rest of the world to boost imports of American goods in an effort to head off protectionist measures. These countries also recognize that it was large imbalances in global trade, specifically the huge U.S. trade deficit, that collapsed the global economy. The question is whether they’ll be able to keep up these imports of American goods when the U.S. economy rebounds and U.S. imports rise, preventing another destructive imbalance in trade.

Pete Murphy
Author, “Five Short Blasts”

]]> By: Dean http://dailyreckoning.com/trade-deficit-plunges/#comment-5183 Dean Sat, 11 Apr 2009 01:29:17 +0000 http://dailyreckoning.com/?p=14481#comment-5183 Chuck, with all respect. What are you talking about? Australia is following the US into cash-for-doing-nothing giveaways. Their twin deficits in years to come are forecast to widen in the same way as the US, not to mention the national debt is approx 80% of GDP. Finally, the money supply is increasing almost 18% yoy - faster than Europe, US, Canada and Japan. My prediction, while it might not be a severe, Australia is going to head for a crisis sometime also. The only thing that can save them is if China goes back to it's bubble levels of consumption of commodities. Chuck, with all respect. What are you talking about? Australia is following the US into cash-for-doing-nothing giveaways. Their twin deficits in years to come are forecast to widen in the same way as the US, not to mention the national debt is approx 80% of GDP. Finally, the money supply is increasing almost 18% yoy – faster than Europe, US, Canada and Japan.
My prediction, while it might not be a severe, Australia is going to head for a crisis sometime also. The only thing that can save them is if China goes back to it’s bubble levels of consumption of commodities.

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