Trade Deficit Hits $58.3 Billion as Chinese Imports Surge

[G_j]

U.S. Trade Deficit Hits $58.3 Billion as Chinese Imports Surge

http://www.truthout.org/docs_2005/031105X.shtml

U.S. Trade Deficit Hits $58.3 Billion as Chinese Imports Surge
By Elizabeth Becker
The New York Times

Friday 11 March 2005

Washington - The United States trade deficit hit $58.3 billion, its second-highest level on record in January, defying predictions that a weakened dollar and lower oil prices would improve the American trade picture.

Instead, American consumers continued to buy foreign-made goods at a record pace, including cars, electronics and business equipment, helping to increase the trade deficit by 4.5 percent from $55.7 billion in December, the Commerce Department reported today.

This month's trade figures also included a surge in Chinese textile and apparel shipments, reflecting the end to global quotas and the beginning of what eventually led to China taking over as much as 70 percent of the American textile and apparel market.

The Bush administration said these trade figures should be seen as testimony to the strength of the American economy and its role as an engine of global growth.

..more..

[FloridaPat]

1. One problem with buying American is so much of it is crap.

I currently have an American car, but I am tired of crappy fall-apart $20,000 cars. My last one cost between $2000-$4000 a year for maintenance and it only had 70,000 miles on it when it died. It was an Olds. Had it been running I would have bought a foreign car with high gas mileage and a 100,000 mile warranty. When I looked at cars, I was told it had a 70,000 warranty. I signed the papers and was getting delivery of the car when I was informed it was only 30,000 and if I wanted more I would have to pay. I told them to keep the car. I got a free upgrade. But it was all lies I was getting.

I buy plastic pots and garden utensiles. They last a year before they fall apart. Shoes last a couple of months. I've had clothing last less than a day before it fell apart. The food in the grocery store has more garbage in it than food. Nothing lasts very long anymore and I'm tired of buying crap.

[teryang]

2. February budget deficit - $113.9 billion !!!!!!!

http://www.kitcocasey.com/displayArticle.php?id=46

Foreign Treasuries Purchases Update 3/11/05

Bud Conrad

<The trade deficit grew to the second highest ever at $58.3B for the month of January. That’s an annual deficit of $700B. The connection above implies an equivalent demand for foreigners to loan us that amount. Imports from China increased 1.9% in January from December, to $17.9 billion. Chinese imports rose 27% year-over-year. There will be some limit as to how much foreigners will continue to loan us, and it seems we are close. A big spike in oil could make this worse, as we have no choice but to pay.

It was announced yesterday that the U.S. budget deficit widened to the biggest monthly gap ever on surges in military and Medicare spending in February. The $113.9 billion monthly shortfall is more than the deficit of $96.7 billion in February 2004. As this is cycled through all the parties of the carousel, the connections continue.

Yesterday there was a new 10-year Treasury auction from the US government to extend its borrowing noted above. It did not surprise the market. The bid to cover was adequate. But the notes carried a yield of 4.504%, which is sharply above the 4.049% on the notes sold a month ago. This is the direction that my analysis has been forecasting. I have focused on foreign purchasing. The indirect bidders in this auction provide some idea of how active foreign central banks may be in buying US debt. While not exactly comparable to the custody holdings, they are a useful indicator. Indirect bidders, which include foreign central banks, bought only 11.7% of the notes, less than their 28.5% share a month ago.

This week, the increase in custody holdings at the Federal Reserve (purchases of Treasuries and Agencies by foreign central banks), was small, only $1.6B....<snip>

[Goldeneye]

3. wow

thats pretty bad.