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Thread: US Trade Deficit Collapses

  1. #1

    US Trade Deficit Collapses

    One month after the biggest plunge in the US trade deficit since the financial crisis - good news for Trump who has engaged in "trade war" with the rest of the world to boost US trader and exports - the good news continued in April, when according to the Census Bureau, the US deficit shrank again, down 2.1% from a revised $47.2BN to $46.2BN - the lowest since September 2017, and beating not only the $49BN consensus estimate, but also also the lowest Wall Street estimate of $46.2BN.

    The number was so good, some were wondering why Trump didn't pre-tweet it, as he did with the payrolls report.
    Incidentally, with today's revision, the March plunge in the US trade deficit has now risen to $10BN, the highest since 2008, and the second biggest improvement in the US deficit on record.
    According to the census bureau, the deficit decreased from a revised $47.2 billion in March to $46.2 billion in April, amid a perfect trade environment as exports rose and imports declined for the second month in a row, or as Trump would say, "his policies to boost US trade worked."

    Broken down by category, the goods deficit decreased $1.0 billion in April to $68.3 billion. The services surplus decreased less than $0.1 billion in April to $22.1 billion.
    The good news: exports of goods and services increased $0.6 billion, or 0.3%, in April to $211.2 billion. Exports of goods increased $0.3 billion and exports of services increased $0.3 billion.

    • The increase in exports of goods mostly reflected increases in industrial supplies and materials ($1.3 billion) and in foods, feeds, and beverages ($0.7 billion). A decrease in capital goods ($1.4 billion) partly offset the increases.
    • The increase in exports of services mostly reflected increases in other business services ($0.1 billion), which includes research and development services; professional and management services; and technical, trade-related, and other services, in financial services ($0.1 billion), and in charges for the use of intellectual property ($0.1 billion).

    Also good news, if only for GDP bean-counters: imports declined, decreasing by $0.4 billion, or 0.2%, in April to $257.4 billion. Imports of goods decreased $0.7 billion and imports of services decreased $0.3 billion.

    • The decrease in imports of goods mostly reflected decreases in consumer goods ($2.8 billion) and in automotive vehicles, parts, and engines ($0.9 billion). Increases in other goods ($1.3 billion) and in industrial supplies and materials ($1.2 billion) partly offset the decreases.
    • The increase in imports of services mostly reflected increases in transport ($0.1 billion), in other business services ($0.1 billion), and in charges for the use of intellectual property ($0.1 billion)

    Broken down by trading partner, the March figures showed surpluses with South and Central America ($4.1), Hong Kong ($2.2), United Kingdom ($0.9), Singapore ($0.7), and Brazil ($0.6
    Meanwhile, the countries that should be worried that they may fall in Trump's trade war sights, and recorded deficit with the US in March, included China, of course, with a $30.8 billion deficit, down sharply from $34.2 billion a month earlier, but also the European Union ($13.2), Mexico ($6.0), Japan ($5.9), Germany ($5.6), OPEC ($3.3), Italy ($2.4), India ($2.0), Canada ($1.7), France ($1.6), South Korea ($1.3), Taiwan ($1.1), and Saudi Arabia ($0.9).
    Finally, to help Trump make his economic case even stronger, the US deficit excluding petroleum products: after hitting a record in February, continued its dramatic improvement in April, suggesting that whatever Trump is doing to boost overall trade (we already know US petroleum exports are soaring), may be working, as it shrank from over $50BN in February to just $41BN in April.

    And now, we expect even more upward revisions to Q2 GDP, which according to the Atlanta Fed will now likely print above 5.0%


    https://www.zerohedge.com/news/2018-...icit-collapses
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  3. #2
    Hopefully if Trump gets incarcerated he can run the country from inside the penitentiary.

  4. #3

  5. #4
    Quote Originally Posted by TheCount View Post
    Oh good, Zerohedge.


    It collapsed to what it was 8 months ago? Stop the presses!

    If Trump and trade wars caused this decrease, then what caused the increase between September 2017 and now?
    A seven month low. And it isn't because of any tariffs. The gains were mostly in oil exports and food items- not manufacturing. https://www.wsj.com/articles/u-s-tra...ril-1528288570
    Donald Trump: 'What you're seeing and what you're reading is not what's happening'

    "Truth isn't truth"- Rudy Giuliani

    Quote Originally Posted by NorthCarolinaLiberty View Post
    I didn't actually read any of the thread. I now mostly just come here to mess with Zip.
    I am Zippy and I approve of this post. But you don't have to.

  6. #5
    Quote Originally Posted by TheCount View Post
    Oh good, Zerohedge.


    It collapsed to what it was 8 months ago? Stop the presses!

    If Trump and trade wars caused this decrease, then what caused the increase between September 2017 and now?
    You sir, are no lover of liberty.
    1. Don't lie.
    2. Don't cheat.
    3. Don't steal.
    4. Don't kill.
    5. Don't commit adultery.
    6. Don't covet what your neighbor has, especially his wife.
    7. Honor your father and mother.
    8. Remember the Sabbath and keep it Holy.
    9. Donít use your Higher Power's name in vain, or anyone else's.
    10. Do unto others as you would have them do to you.

    "For the love of money is the root of all evil..." -- I Timothy 6:10, KJV

  7. #6
    Quote Originally Posted by Zippyjuan View Post
    A seven month low. And it isn't because of any tariffs. The gains were mostly in oil exports and food items- not manufacturing. https://www.wsj.com/articles/u-s-tra...ril-1528288570
    That must explain the large letters that state "excluding petroleum products" on the chart. It also says it in the text, but even if you didn't read it, it was on the chart, which is your speciality.
    Twitter: B4Liberty@USAB4L
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  8. #7
    Quote Originally Posted by Schifference View Post
    Hopefully if Trump gets incarcerated he can run the country from inside the penitentiary.
    If Trump ever goes to prison, it will only be to say hi to Hillary
    It's all about taking action and not being lazy. So you do the work, whether it's fitness or whatever. It's about getting up, motivating yourself and just doing it.
    - Kim Kardashian

    Donald Trump / Rand Paul (Vice Pres) 2016!!!!

  9. #8
    Quote Originally Posted by TheTexan View Post
    If Trump ever goes to prison, it will only be to say hi to laugh at Hillary
    fixed it.
    Never attempt to teach a pig to sing; it wastes your time and annoys the pig.

    Robert Heinlein

    Give a man an inch and right away he thinks he's a ruler

    Groucho Marx

    I love mankindÖitís people I canít stand.

    Linus, from the Peanuts comic

    You cannot have liberty without morality and morality without faith

    Alexis de Torqueville

    Those who fail to learn from the past are condemned to repeat it.
    Those who learn from the past are condemned to watch everybody else repeat it

    A Zero Hedge comment



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  11. #9
    Economic ignorance on display.
    "And now that the legislators and do-gooders have so futilely inflicted so many systems upon society, may they finally end where they should have begun: May they reject all systems, and try liberty; for liberty is an acknowledgment of faith in God and His works." - Bastiat

    "It is difficult to free fools from the chains they revere." - Voltaire

  12. #10



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