Chinas trade surplus with the USA sets new record in September.

Discussion in 'Economics & Trade' started by 61falcon, Oct 12, 2018.

  1. ronv

    ronv Well-Known Member

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  2. Pro_Line_FL

    Pro_Line_FL Well-Known Member Past Donor

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    US trade gap grew to $54 billion in September
    https://www.msn.com/en-us/money/mar...w-to-dollar54-billion-in-september/ar-BBPfFbT

    WASHINGTON — Record imports expanded the U.S. trade deficit for the fourth straight month in September, as the politically sensitive trade deficit in goods with China hit a record.

    The Commerce Department said Friday that the gap between what America sells and what it buys abroad climbed to $54 billion, up 1.3 percent from $53.3 billion in August and the highest level since February
     
  3. Reiver

    Reiver Well-Known Member

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    Very easy to sort out a trade imbalance. Consume less, save more!
     
  4. kazenatsu

    kazenatsu Well-Known Member Past Donor

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    Trade imbalances eventually autocorrect when the importing country becomes as poor as the exporting country.

    That can take 15 to 30 years.

    Obviously you're not going to pay someone else in another country 5 dollars an hour to do something when you're earning 5 dollars an hour yourself.
     
    Last edited: Nov 21, 2018
  5. kazenatsu

    kazenatsu Well-Known Member Past Donor

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    The fact that the trade deficit has gone up, while not good in itself, is a sign American consumption (especially on the low end) is up.
     
  6. Reiver

    Reiver Well-Known Member

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    This isn't interesting or valid. Teach yourself the national income identity, then get back to me.
     
  7. independentDEM

    independentDEM New Member

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    ...yep, the infamous, "Giant sucking sound," Ross Perot talked about in the 90's.
    Now much of the Midwest is an economic wasteland. I'm afraid the tariffs are too little, too late.
    In addition, they were too much. We weren't ready for a trade war with Red China.
     
  8. kazenatsu

    kazenatsu Well-Known Member Past Donor

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    It's somewhat like an opioid drug addiction. The patient can't stay on that path forever and needs to get off, but going off cold-turkey will result in severe withdrawal symptoms and kill them.
    The economy is going to need some time to adjust, but the longer it takes to adjust the more protracted the problem is going to be.

    There are some economists who believe it could take as little as 4 to 6 years to adjust.
    Businesses will have to develop new supply chains.
    A lot of those old American businesses that used to supply them were driven out of business.

    In the 70s people were complaining about auto manufacturing moving away to the Japanese. Well that's nothing compared to what came later in the late 90s, but by that time the idea of American factories getting up and moving overseas had become completely normal, and in the midst of the computer/tech boom and real estate boom no one noticed.
     
    Last edited: Nov 23, 2018
  9. Reiver

    Reiver Well-Known Member

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    There's no state of readiness. Trade wars are cretinous. If the US genuinely cared about fair trade, they'd be supporting multilateralism. They aren't. Indeed, for years they have tried to kick multilateralism in touch with bilateral trade agreements (which have naff all to do with fair trade). They intensified that approach by attacking the WTO's dispute settlement process.
     

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