Tuesday, July 13, 2010

U.S. Trade Reaches 19-Month High of $314b in May

The BEA released monthly data today on U.S. International Trade for May (link), and reported that "Total May exports of $152.3 billion and imports of $194.5 billion resulted in a goods and services deficit of $42.3 billion, up from $40.3 billion in April, revised.  May exports were $3.5 billion more than April exports of $148.7 billion. May imports were $5.5 billion more than April imports of $189.0 billion."

Total U.S.international trade (exports + imports) reached a 19-month high of $314 billion in May, the highest level since October 2008, and 27.5% above the April 2009 low of $246 billion (see chart above).  Further, international trade volume has increased in 10 out of the last 13 months, providing further evidence that the economy started on a recovery path last summer and continues to make solid gains almost every month.    

5 Comments:

At 7/13/2010 12:08 PM, Anonymous gettingrational said...

Is the recovery in international trade a return to delusional U.S. consumption? "Trade Gap grows 4.8% to 42.3 billion dollars. Trade Gap with China widened to 22.3 billion in May from 19.3 billion in April." For the farce of the last two decades to end the trade gap has to close or else the U.S. economic system will further degrade.

Headlines spout about the success of GM in China. GM China is a Chinese company where the original GM is a minority owner of a co. that makes all their products locally. The U.S. needs export opportunities and there is no need for trade with countries that are so blatantly mercantile.

 
At 7/13/2010 7:57 PM, Blogger VangelV said...

The U.S. needs export opportunities and there is no need for trade with countries that are so blatantly mercantile.

I must be missing something. Why shouldn't US producers be selling products to China and why shouldn't Chinese producers sell to the US? In both cases the consumers have more choice and benefit from lower prices.

 
At 7/13/2010 10:42 PM, Anonymous gettingrational said...

"I must be missing something.

Yes, U.S. trade figures for the last ten years and any knowledge of the Chinese mercantile system that denies U.S. produced products in the Chinese market.

 
At 7/14/2010 10:53 AM, Anonymous Anonymous said...

Yes, U.S. trade figures for the last ten years and any knowledge of the Chinese mercantile system that denies U.S. produced products in the Chinese market.

The US trade data shows that the government's preference for consumption is working to plan. And having lived in China I had no problem finding US products. The problem was that there were few that were competitive with those from Japan, Korea, or Germany. It is not the fault of the Chinese that the US regulatory environment is driving many manufacturing jobs abroad or that the productivity increases reduces the need for workers.

 
At 7/14/2010 12:51 PM, Blogger VangelV said...

What about the default option? More at:

http://wjmc.blogspot.com/2010/07/what-about-default-option.html


The default option will be taken eventually. There is no way for the government to meet its SS and Medicare obligations so a default on that front in real terms is inevitable.

A default would also mean that the USD would no longer be a reserve currency or that lenders would be willing to buy USTs. That would require that the US go back to a hard money system that would protect savers from inflation driven confiscation and workers from a loss of purchasing power of their wages.

Of course, the default would mean an end to the Welfare and Warfare State and would require a limited government that sticks to the activities that it is authorized to do by the Constitution. The old virtues of being responsible for one's own actions, minding one's own business and being a good neighbour will come back in fashion and life should be simpler and more authentic.

The biggest benefit would be the decline and fall of the parasite class that has been living off the productive individuals and pushed the positivism that has reduced individual liberty and pushed society towards the abyss.

 

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