US June Trade Deficit Widens to $49.9 billion

http://www.bloomberg.com/news/2010-...idens-to-49-9-billion-as-exports-decline.html

Getting worse.

"The gap expanded $7.9 billion, the most since record- keeping began in 1992, to $49.9 billion in June."

"A $42.1 billion deficit was projected by economists..."

"Imports climbed 3 percent, while exports dropped 1.3 percent..."

"The gap increased 19 percent from a May shortfall of $42 billion."

"Business investment is one of the U.S. economy’s bright spots. Purchases of equipment and software in the second quarter rose at a 22 percent annual rate, the biggest gain since 1997..."




"The U.S. shortfall with China widened to $26.2 billion in June..."

"China’s July trade surplus surged 44 percent to $28 billion..."

 

NO SHIT! We keep exporting our productive capacity to a communist nation where the state controls everything.

 

Contrast to popular belief that China is dis-proportionally dependent on trade with U.S., Biggest danger for the U.S. in its economic relations with China is that U.S.
trade with China is becoming less relevant comparing to U.S. stands in global economy. i.e. China's trade with U.S. is on 17% of total China external trade; while U.S. economy is 23% that of the World. The disparity is becoming larger rather than smaller.

 

I see it mainly as a function of a strong dollar. When that changes the gap will narrow.

 

Ha! What you're forgetting is that "trade" is a 2-way street. The problem is trade DEFICIT. Europe & US are being screwed on trade with China. While it may feel good to buy all that crap "cheap" today, it's having horrendous problems down the road. All these deficits are at the core of the West's debt collapse. Essentially China has been FINANCING the US & Europe trade deficits for last few years.
How long can it continue? 'Till they're bankrupt?

http://www.census.gov/foreign-trade/balance/c5700.html#2010

http://europa.eu/rapid/pressRelease...format=HTML&aged=0&language=EN&guiLanguage=en

 

Chinese "trade" with Europe.

 

Chinese "trade" with US.

 

Chinese "trade" with Japan.

 

Maybe when the Chinese stop financing those trade deficits?

Or when US & Europe reach 20% unemployment?

 

Ok..let's fix this...China's trade is dependent on trade imbalances with other countries. How long is that gravy train going to last? Not very much longer.