Trade deficit drops to $39.9B; lowest in 6 years

[Sapiens]

http://finance.yahoo.com/news/Trade-...-14321652.html

WASHINGTON (AP) -- The U.S. trade deficit fell to the lowest level in nearly six years in December as the recession depressed demand for imports. The trade deficit in 2008 fell for a second straight year and economists expect an even bigger decline this year.

The Commerce Department said Wednesday that the deficit in December fell 4 percent to $39.9 billion, from $41.6 billion in November. It was slightly higher than the $36 billion deficit economists expected.

For the year, the deficit shrank by 3.3 percent to $677.1 billion. It was the second straight annual decline after five straight years of record deficits.

The 2008 imbalance was the lowest annual total since 2004, and many economists believe the deficit for 2009 will be half the size of last year's gap. However, the improvement is due to a painful recession that is cutting demand for imports of oil, autos and other foreign-made products.

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[Fiat Currency]

Re: Trade deficit drops to $39.9B; lowest in 6 years

Yep - and here's the Canadian side of that equation this morning ...

Plunge in exports spurs first trade deficit in 30 years


http://business.theglobeandmail.com/.../Business/home

HEATHER SCOFFIELD
Globe and Mail Update, with files from the Canadian Press
February 11, 2009 at 9:17 AM EST

Canada has recorded its first trade deficit in more than 30 years, with drops in both exports and imports driving the trade balance to negative $458-million in December.
It's the first trade deficit since March, 1976, as the stagnation in global trade meant exports fell at a faster pace than imports in the month.
“The combination of a collapse in commodity prices and a collapse in U.S. demand took a meat clear to exports,” said Douglas Porter, deputy chief economist at BMO Nesbitt Burns, calling the trade report a “watershed” in Canadian economics.
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[metalman]

Re: Trade deficit drops to $39.9B; lowest in 6 years

Yep - and here's the Canadian side of that equation this morning ...

Plunge in exports spurs first trade deficit in 30 years


http://business.theglobeandmail.com/.../Business/home

welcome to the usa model! now, better hurry and tie the canadian dollar to the us dollar... don't want to see you all going argentina on us :eek:

[metalman]

Re: Trade deficit drops to $39.9B; lowest in 6 years

China’s January Exports Fall 17.5%, Most Since 1996

Feb. 11 (Bloomberg) -- China’s exports fell by the most in almost 13 years as demand dried up in the U.S. and Europe, worsening the outlook for jobs and industrial production in the world’s third-biggest economy.

Shipments declined 17.5 percent in January from a year earlier, the customs bureau said on its Web site today, after falling 2.8 percent in December. The latest number was worse than the 14 percent decline forecast in a Bloomberg News survey of 14 economists.

[Fiat Currency]

Re: Trade deficit drops to $39.9B; lowest in 6 years

... don't want to see you all going argentina on us :eek:

Americans & Canadians are like brothers who occasionally both love and hate each other. While the concern is appreciated - here's how I see it ...

- US prints a few Trillion more
- T-Bill market eventually implodes
- Fed starts to monetize
- Stock market deflates another 20%
- Strong inflation takes hold
- Interest rates rise
- Commodities lead the recovery (eventually)
- US debt goes over 400% GDP (Canada's at about 22%)
- Talks begin on a new International monetary unit (based on gold) for import/export trade only
- $CDN settles in nicely at about $1.10 US

We'll have our troubles & issues - but compared to you guys I think we'll come out smelling like roses. (no offence intended)