[Sgs-Cruz]

$this->bbcode_second_pass_quote('Colorado-Valley', 'A')nd if the U.S. crashes, we're all moving up to Canada enmasse ...

[clv101]

Trade surplus is no better than trade deficit - trade surplus increases the local money supply, which increases investment, increasing capacity, eroding prices, crashing the economy. It's happened whenever large supplies existed.

[frankthetank]

$this->bbcode_second_pass_quote('', 'T')he U.S. trade deficit widened by 11.4% in September to a record $66.1 billion, the Commerce Department said. Read full government report.

[leal]

How much of the increase is due to expensive oil?

[frankthetank]

$this->bbcode_second_pass_quote('', 'I')mports of goods alone rose 2.7% to $144.5 billion. All categories on imports rose except autos. Imports of industrial supplies, including natural gas, fuel oil and other petroleum products rose 6.2% to $46.9 billion.

The petroleum deficit widened 6.8% to a record $22.2 billion.

The value of U.S. oil imports fell to $16.0 billion in September from $17.2 billion in August. The price of a barrel of oil rose to a record $57.32 in September, but the quantity of crude oil imports fell to 278.5 million barrels, the lowest since February 2003.

[KevO]

http://news.bbc.co.uk/1/hi/business/4425446.stm

The US trade deficit with the rest of the world jumped to a record $66.1bn (£37.8bn) in September, as oil prices soared following Hurricane Katrina.

Overall imports to the US rose by 2.4% during the month to $171.3bn, while exports fell by 2.6% to $105.2bn, the US Commerce Department said.

The soaring US deficit came as China reported a record $12bn global trade surplus of its own in October.

The news will exacerbate trade tensions between the US and China.

The higher than expected Chinese surplus was largely fuelled by Western retailers stocking up on products ahead of Christmas.

Meanwhile, the US reported that the trade gap between the two countries reached a record $20.1bn in September.

The spiralling deficit fuelled US pressure on China to cut back its clothing exports, leading to a restrictive deal that was signed earlier this week.

'Worst fears'

September's overall US deficit was 11.2% higher than the $59.3bn reported in the previous month and topped the previous deficit record of $60.4bn set in February this year, the Commerce Department said.

US crude prices hit a record $70.85 a barrel in the wake of Hurricane Katrina, which hit the US Gulf Coast in late August and shut down much of much of the region's oil refining capacity.

"We knew that there were going to be some hurricane-related distortions in the September data, but this really exceeded our worst fears," said Michael Woolfolk, a senior currency strategist with Bank of New York.

Imports to the US of foods and industrial supplies and materials also hit record levels during September, the Commerce Department reported. [B]

[Falstaff]

And yesterdays 10 yr. T-bill auction (to foreign buyers) was a total bust. First time ever I think.. (Only 21% of the offer was bid upon) Check Bloomberg for the story, prolly buried by now though.

[FireJack]

Here is why im glad im canadian right now:
Canada's trade surplus grows to $7.02-billion in September as exports set a record

[DantesPeak]

Under the present US dollar regime, the US effectively has a gasoline credit card with no limits, no interest payments, and even no principle payments. So the price and quantities of energy imports has not slowed the economy.

So far, that is.

$this->bbcode_second_pass_quote('', 'O')nward and Upward, for Now
by Charles Mackay, Sunday November 06 2005

The US trade deficit is still growing larger, with the help of recycled 'petrodollars'.

While the International Energy Administration rescued the US from possible nationwide gasoline shortages after Hurricane Katrina struck (IEA and Oil Supply Disruption), there is a price that must be paid for these increased energy imports- namely, the creation of more 'petrodollars' at a faster pace (see also Petrodollar Warfare).

The issue of petrodollars, which itself is part of the larger ad-hoc Breton Woods II*, worldwide US dollar regime, helps explain how the US economy manages to shrug off repeated energy price shocks and escalating military/disaster expenses. As long as all those 'petrodollars' that are created to pay for the huge trade deficit are recycled back into U S dollars, the US economic system can usually function fairly well.

[Euric]

$this->bbcode_second_pass_quote('frankthetank', '
')
How can this keep continueing? DO the Chinese know there never getting even half their money back? Will they try to enslave Americans @ some point?

[bobcousins]

$this->bbcode_second_pass_quote('Euric', 'T')hey don't need to enslave you. They will cause the US economy to collapse and the Americans as they are falling will kill each other off. Then China will take over the country and populate it with their kind.

[marko]

$this->bbcode_second_pass_quote('FireJack', 'H')ere is why im glad im canadian right now:
Canada's trade surplus grows to $7.02-billion in September as exports set a record

[donshan]

There is no question that one of the most important factors in this trade deficit is the relationship between China and the US and the rest of the world too.

We will be hearing more of this as President Bush makes a trip to China, and I am sure we will get the usual spin on all the issues.

As background, if you are interested, is a new report (November, 2005) by the U.S.-China Economic and Security Review Commission, a joint Republican- Democrat (6 each) Congressional Commisson:

It is a scary report! In effect China has a long term strategy, we do not.
I will just give a couple of quotes and urge reading the report:

http://www.uscc.gov/annual_report/2005/ ... ull_05.pdf

BTW, "Peak Oil" mentioned in Congress! Progress is being made.


$this->bbcode_second_pass_quote('', 'T')he Commission concludes that over the past year, on balance,
the trends in the U.S.-China relationship have negative
implications for our long-term national economic and
security interests.
America’s approach to China needs a coherent strategic framework
based on an understanding of the challenges and the opportunities
for cooperation in the U.S.-China relationship. It must also
be grounded in a clear-eyed understanding of how the Chinese political
and military leadership leads the country, how decisions are
made, and how the country’s economy works. Far too often, policymakers
expect reflections of their own set of values and decisionmaking
approaches when projecting how China will act under different
conditions and scenarios. China is an authoritarian regime
and has a non-market, command economy still controlled by the
Communist Party. The central goal of its leadership is maintaining
its own power, at any cost.
While some encouraging changes are occurring in China, the
basic differences between our countries must be neither forgotten
nor underestimated. China has different interests, goals, and values
underlying its decisions, and these differences present enormous
challenges to U.S. interests around the globe. The Chinese
government uses the system in ways that produce advantages for
it and all too often fails to honor its commitments when they are
inconvenient for China.

[rogerhb]

NZ has got the lowest unemployment rating in the OECD!

Whooo, whooo, whooo!

Even Yosser Hughes has a job!

[FoxV]

$this->bbcode_second_pass_quote('Falstaff', 'A')nd yesterdays 10 yr. T-bill auction (to foreign buyers) was a total bust. First time ever I think.. (Only 21% of the offer was bid upon) Check Bloomberg for the story, prolly buried by now though.

[smiley]

$this->bbcode_second_pass_quote('', 'I')'ll look tonight, but can anybody find the list of who is holding the T-Bills these days. It would be interesting to see if its all going to "Caribbean Banks" again

[FoxV]

$this->bbcode_second_pass_quote('smiley', '')$this->bbcode_second_pass_quote('', 'I')'ll look tonight, but can anybody find the list of who is holding the T-Bills these days. It would be interesting to see if its all going to "Caribbean Banks" again

[AmericanEmpire]

The US is beyond saving. We crossed the point of no return a long time ago with regards to debts and deficits.

[Euric]

$this->bbcode_second_pass_quote('rogerhb', 'N')Z has got the lowest unemployment rating in the OECD!

Whooo, whooo, whooo!

Even Yosser Hughes has a job!

[PWALPOCO]

BBC


Dont know if this made the PO forums , havent noticed it about.

Have you guys over the pond been spending abroad again !? Tut tut.

Paul