Well all is well. Bennie and Timmy’s plan is working perfectly. The plan was to print money until the cows came home. By printing money they wanted to push the value of the dollar lower and generate artificial profits for the international conglomorates that outsourced your jobs to Asia. They’ve succeeded as exports hit an all-time high this month. Part two of the plan was to hand the newly printed money to Wall Street banks so they could artificially generate a stock market rally. This would enrich the bankers and make Americans feel wealthier. Whenyou feel wealthier, you spend money you don’t really have. They’ve succeeded on this front too. The clueless American consumer is again buying shitloads of crap from Asia using their credit cards. So there you have it. We’ve got a finely tuned recovery.
The annual trade deficit is now running at $575 billion per year. Consumer debt is back up to $2.425 trillion and rising. Our annual cost of importing foreign oil is only $400 billion. Inflation for food and energy is only running a little above 10%. See, we’re backed to a well balanced economy.
Thanks Bennie and Timmy!!!!
March Trade Deficit Jumps To $48.2 Billion As Imports Surge
Submitted by Tyler Durden on 05/11/2011 08:40 -0400
And just as Citigroup predicted, US imports surge even as US exports jump to a record $172.7 billion. But the story is once again in the GDP reducing imports which jump by a whopping $220.8 billion, a $10.4 billion jump M/M. The total deficit of $48.2 billion is the highest since the June 2010 spike which hit $49.9 billion. From the release: “Exports increased to $172.7 billion in March from $165.0 billion in February. Goods were $124.9 billion in March, up from $117.8 billion in February, and services were $47.7 billion in March, up from $47.2 billion in February. Imports increased to $220.8 billion in March from $210.4 billion in February. Goods were $187.0 billion in March, up from $176.9 billion in February, and services were $33.8 billion in March, up from $33.5 billion in February. For goods, the deficit was $62.1 billion in March, up from $59.1 billion in February. For services, the surplus was $13.9 billion, up from $13.7 billion in February.” Ah, financial innovation being exported as per usual. Look for another round of Q1 GDP downgrades as this number takes out a few basis points in growth. As we know from China that April exports to the US jumped even more, this import surge will likely carry over into Q2 and result in more GDP cuts.
- The February to March increase in exports of goods reflected increases in industrial supplies and materials ($2.5 billion); automotive vehicles, parts and engines ($1.6 billion); capital goods ($1.0 billion); other goods ($0.8 billion); consumer goods ($0.7 billion); and foods, feeds, and beverages ($0.6 billion).
- The February to March increase in imports of goods reflected increases in industrial supplies and materials ($7.7 billion); automotive vehicles, parts and engines ($2.1 billion); capital goods ($1.6 billion); and other goods ($0.6 billion). A decrease occurred in consumer goods ($2.0 billion). Foods, feeds, and beverages were virtually unchanged.
- The February to March increase in exports of services was more than accounted for by increases in other private services ($0.3 billion), which includes items such as business, professional, and technical services, insurance services, and financial services, other transportation ($0.1 billion), which includes freight and port services, passenger fares ($0.1 billion), and transfers under U.S. military agency sales contracts ($0.1 billion). A decrease in royalties and license fees ($0.1 billion) was partly offsetting. Changes in the other categories of services exports were small.
- The February to March increase in imports of services was mostly accounted for by increases in other transportation ($0.2 billion) and other private services ($0.1 billion). Changes in the other categories of services imports were small.
And on the key relationship with China:
- The goods deficit with China decreased from $18.8 billion in February to $18.1 billion in March. Exports increased $1.1 billion (primarily industrial machines; civilian aircraft, engines, equipment, and parts; and passenger cars) to $9.5 billion, while imports increased $0.3 billion (primarily computers and accessories and telecommunications equipment) to $27.6 billion.
Which, as usual is quite funny, considering that from a Chinese perspective, exports to the US in March were $13 billion, and in April $15.1 billion. In other words, in March there was just a 30% discrepancy between the two most prevaricating economies.