US Trade Deficit SA
It is sending USD overseas that have lost appeal and are driving the USD down to levels where they get spent here, hence the falling trade deficit.
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It is sending USD overseas that have lost appeal and are driving the USD down to levels where they get spent here, hence the falling trade deficit.
http://www.forbes.com/markets/feeds/afx/2008/04/10/afx4875239.html
Overall trade deficit up, but oil imports down, and imports from China way down.
Could be that the Chinese no longer want to accumulate dollars, but apparently others are still interested. And are US consumers finally responding to high gas prices or is this a seasonally normal change?
yes, that’s the big question.
my best guess is the trade gap is heading towards 0. I just don’t see who/what/where will replace the foreign desire to accumlate $US without the CB’s and monetary authorities buying anymore.
That means the dollar trades at a level that corresponds to a much lower trade gap
i expect the next rade gap report to be substantially lower- maybe down to the low 50 billion level, as the detail of the import component looks like a timing zig