Trade Deficit Surged to Record $61 Billion in February

Discussion in 'Politics, Religion, Social Issues' started by zimv20, Apr 12, 2005.

  1. zimv20 macrumors 601

    zimv20

    Joined:
    Jul 18, 2002
    Location:
    toronto
    #1
    link

    i remember some speculation on this board that the falling dollar would raise exports and perhaps start to close the trade gap. looks like the good isn't coming with the bad.
     
  2. kuyu macrumors 6502a

    kuyu

    Joined:
    Sep 16, 2003
    Location:
    Louisville
    #2
    Actually, many countries are buying the hell out of t-bills to keep the dollar propped up so that we don't gain any more of a comparitive advatage over them. Thus the FED's extremely measured pace in raising the value of the dollar. Foreign governments are doing their best to strengthen it.

    There is one way to create a trade surplus overnight... Eliminate minimum wage and lock workers in factories!

    Seriously though, my Mom works for Toyota, which is a Japanese firm. However, they have about 17 plants in the US and 2 in Japan. Is this taken into account, or are all Toyota cars counted as "imports"? They're the best cars on the market (Scion, Lexus, Toyota most reliable in consumer reports) and they're made in the good ole' US of A.
     
  3. Sun Baked macrumors G5

    Sun Baked

    Joined:
    May 19, 2002
  4. Desertrat macrumors newbie

    Joined:
    Jul 4, 2003
    Location:
    Terlingua, Texas
    #4
    Sun Baked, why would it matter one iota about WalMart? Seems to me the deal is that folks are spending, not saving. Where they spend is not important.

    Seems to me that folks are all eat uip with "New!" and "Shiny!" and "More!" whether they actually have any real use or need beyond gratification. When apend-spend-spend is the public fad, we wind up with full-bore Consumeritis and thus the trade deficit. Why is anybody surprised?

    In the FWIW department, the dollar is expected to decline by another 25% or so, by some who've been watching the markets. Butler at Everbank.com is one of them...Paul Volcker has offered some rather scary insights about the future of our money and economy. And it's all been rolling along quite happily since the Reagan boom began.

    Toyota is building another assembly plant, in San Antonio. IIRC, they plan to have some 2,500 new jobs there. More FWIW: There was less warranty work on Hondas assembled in the US than in Hondas imported from Japan, per some consumer report back a few years.

    "...policymakers and economists have turned to blame China for a good portion of the deficit."

    If China were to let the renmimbi float, WalMart prices would jump about 30%. This float probably won't happen until China's own consumption rate grows to the point that they have much less need for the dollars they get via present sales into the US. But they're already going to a "basket of currencies" instead of relying on the USD to evaluate the renmimbi.

    Like most stuff, we're doing it to ourselves, all the while looking for somebody else to blame.

    'Rat
     

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