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Thread: US trade deficit widened to $47.2 billion in April, 2-year high as imports hit record

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    US trade deficit widened to $47.2 billion in April, 2-year high as imports hit record

    'WASHINGTON (AP) The U.S. trade deficit jumped to a two-year high in April, as exports declined and imports surged to a record high.

    The deficit rose to $47.2 billion in April, up 6.9 percent from an upwardly revised March deficit of $44.2 billion, the Commerce Department said Wednesday.

    Exports dropped for the fourth month out of the past five, falling 0.2 percent to $195.4 billion. Meanwhile, imports climbed 1.2 percent to an all-time high of $240.6 billion, reflecting record shipment levels of foreign-made cars, food, computers and other goods.'

    US trade deficit at two-year high in April - US News

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    Re: US trade deficit widened to $47.2 billion in April, 2-year high as imports hit re

    Quote Originally Posted by DA60 View Post
    'WASHINGTON (AP) — The U.S. trade deficit jumped to a two-year high in April, as exports declined and imports surged to a record high.

    The deficit rose to $47.2 billion in April, up 6.9 percent from an upwardly revised March deficit of $44.2 billion, the Commerce Department said Wednesday.

    Exports dropped for the fourth month out of the past five, falling 0.2 percent to $195.4 billion. Meanwhile, imports climbed 1.2 percent to an all-time high of $240.6 billion, reflecting record shipment levels of foreign-made cars, food, computers and other goods.'

    US trade deficit at two-year high in April - US News
    That is not nice at all. Something must be done about the currency.

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    Re: US trade deficit widened to $47.2 billion in April, 2-year high as imports hit re

    Quote Originally Posted by joG View Post
    That is not nice at all. Something must be done about the currency.
    If you mean weaken the currency to 'fix' the trade deficit?

    Japan is doing that.

    It's not working:


    Japan Balance of Trade | Actual Value | Historical Data | Forecast

    Sure, exports go up...but imports often go up more.

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    Re: US trade deficit widened to $47.2 billion in April, 2-year high as imports hit re

    Quote Originally Posted by DA60 View Post
    'WASHINGTON (AP) — The U.S. trade deficit jumped to a two-year high in April, as exports declined and imports surged to a record high.

    The deficit rose to $47.2 billion in April, up 6.9 percent from an upwardly revised March deficit of $44.2 billion, the Commerce Department said Wednesday.

    Exports dropped for the fourth month out of the past five, falling 0.2 percent to $195.4 billion. Meanwhile, imports climbed 1.2 percent to an all-time high of $240.6 billion, reflecting record shipment levels of foreign-made cars, food, computers and other goods.'

    US trade deficit at two-year high in April - US News
    Pretty much irrelevant for the US. Most goods are paid in dollars, so the US does not have to get dollars.. they just print it, hence a deficit is not as important as a country with their own currency that is not that popular.
    PeteEU

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    Re: US trade deficit widened to $47.2 billion in April, 2-year high as imports hit re

    Quote Originally Posted by PeteEU View Post
    Pretty much irrelevant for the US. Most goods are paid in dollars, so the US does not have to get dollars.. they just print it, hence a deficit is not as important as a country with their own currency that is not that popular.
    Are you overlooking the obvious underlying indicators becase your'e politically motivated to do so ?

    Or for some other reason ?

    The demand in the US dollar is weakening even after the FED anounced it would cut back its bond buying malfeasance.

    So if QE isnt artificially lowering the value of the dollar then what is ?

    Could it be that investors realize that the underlying economic conditions are far worse than the Obama administration would like to you to believe ?

    A devalued currency with large trade imbalance means one thing. That its the middle class consumer who will be affected the most...well the poor too and people on fixed incomes ofcourse
    Last edited by Fenton; 06-04-14 at 10:18 PM.

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    Re: US trade deficit widened to $47.2 billion in April, 2-year high as imports hit re

    Quote Originally Posted by DA60 View Post
    If you mean weaken the currency to 'fix' the trade deficit?

    Japan is doing that.

    It's not working:


    Japan Balance of Trade | Actual Value | Historical Data | Forecast

    Sure, exports go up...but imports often go up more.
    No, weakening the currency will not do it. Free exchange rates are, what would have been needed and should be enforced. Fixed rates always mean distorted allocation, which is something the is a problem for the underlying economy and always comes home to roost.

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    Re: US trade deficit widened to $47.2 billion in April, 2-year high as imports hit re

    Quote Originally Posted by PeteEU View Post
    Pretty much irrelevant for the US. Most goods are paid in dollars, so the US does not have to get dollars.. they just print it, hence a deficit is not as important as a country with their own currency that is not that popular.
    Very well put! There is actually a crowd that believes that bend of Voodoo economics.

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    Re: US trade deficit widened to $47.2 billion in April, 2-year high as imports hit re

    Quote Originally Posted by Fenton View Post
    Are you overlooking the obvious underlying indicators becase your'e politically motivated to do so ?

    Or for some other reason ?

    The demand in the US dollar is weakening even after the FED anounced it would cut back its bond buying malfeasance.

    So if QE isnt artificially lowering the value of the dollar then what is ?

    Could it be that investors realize that the underlying economic conditions are far worse than the Obama administration would like to you to believe ?

    A devalued currency with large trade imbalance means one thing. That its the middle class consumer who will be affected the most...well the poor too and people on fixed incomes ofcourse
    You do realize the last time you had a surplus in the US was in the 1970s, and the surpluses before that was in the single digit billions of dollars right?

    My point is, you have the world currency, hence it is not important. Take a country like Denmark, or Poland or Russia.. here it is important, because in order to buy resources like oil and gas or food, then you need dollars. And you can not just print dollars, so you have to get them via exporting your goods aka selling in dollars or by lending dollars. That is why a trade deficit is far far far more important for every other country BUT the US at this present time.
    PeteEU

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    Re: US trade deficit widened to $47.2 billion in April, 2-year high as imports hit re

    Quote Originally Posted by DA60 View Post
    Exports dropped for the fourth month out of the past five, falling 0.2 percent to $195.4 billion. Meanwhile, imports climbed 1.2 percent to an all-time high of $240.6 billion, reflecting record shipment levels of foreign-made cars, food, computers and other goods.
    Ah, yes. "Horrible winter weather" continues into April. All those delivery trucks are STILL stuck in the snow?? Is this the "significant rebound" we were told to expect?

    Economists are still wearing their beer-glasses.
    Last edited by Taylor; 06-05-14 at 09:43 AM.

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    Re: US trade deficit widened to $47.2 billion in April, 2-year high as imports hit re

    Quote Originally Posted by PeteEU View Post
    You do realize the last time you had a surplus in the US was in the 1970s, and the surpluses before that was in the single digit billions of dollars right?

    My point is, you have the world currency, hence it is not important. Take a country like Denmark, or Poland or Russia.. here it is important, because in order to buy resources like oil and gas or food, then you need dollars. And you can not just print dollars, so you have to get them via exporting your goods aka selling in dollars or by lending dollars. That is why a trade deficit is far far far more important for every other country BUT the US at this present time.
    And what if the US dollar loses that reserve currency status...as many BRIC countries are calling for? Then what?

    Nothing Lasts Forever; World Bank Ex-Chief Economist Calls For End To Dollar As Reserve Currency | Zero Hedge

    Is the Dollar REALLY Losing Its Reserve Currency Status ... If So, What Will REPLACE It? Washington's Blog

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