Bill
12-17-2007, 11:17 PM
Read this article, talking about the "decrease in the trade deficit, using the new accounting methods".
The new accounting methods now also track "investment money" - and "investment money:" flowing into this country is growing.
What does this mean? Are "investors" buying trasury bonds? No, the dollar is weak, US interest rates suck, nobdoy wants the dollar.
What's happening, is that the rich middle east and china are BUYING UP american companies and assets, at bargain basement prices, taking advantage of the weak dollar and our cheesy debt-ridden economy to buy our capital base and interior wealth.
Our "goods" deficit was still $199 billion. We imported 200bil more goods than we exported. Our manufacturing still sucks.
Now look at the little notice at the bottom of the article. "Oh yeah, by the way, just last month things were worse, and the goods deficit with china reached a new high".
http://www.msnbc.msn.com/id/22295425/
The Commerce Department reported Monday that the current account trade deficit fell by 5.5 percent to $178.5 billion in the July-September quarter. That was a better-than-expected showing and the smallest current account imbalance since a $173.4 billion deficit in the third quarter of 2005.
The current account is the most comprehensive measure of trade because it includes not only trade in products and services but also investment flows between countries.
The trade improvement reflects in part the decline of the dollar against many other major currencies. A weaker dollar makes U.S. products cheaper in foreign markets while making foreign goods more expensive for American consumers.
The deficit in goods shrank by 2.2 percent to $199.7 billion in the third quarter as record levels of export sales helped offset a rising foreign oil bill.
The surplus in services, items such as airline tickets and consulting fees, increased by 3 percent to $26.5 billion. The surplus in investment income flows surged by 61.5 percent to $20.5 billion. The only deterioration occurred in the category that includes foreign aid, which rose to $25.8 billion, up from $23.2 billion the previous quarter.
The decline in the current account deficit left it a 5.1 percent of the country's total economic output, down from 5.5 percent from the second quarter. That was the lowest level in terms of GDP since the first quarter of 2004.
The government reported last week that the monthly deficit in just goods and services rose in October to $57.8 billion, reflecting record oil prices and a record deficit with China. While it was the highest monthly imbalance since July, economists are still looking for the deficit for the year to decline as American manufacturers see export gains from the weaker dollar and stronger growth overseas.
The new accounting methods now also track "investment money" - and "investment money:" flowing into this country is growing.
What does this mean? Are "investors" buying trasury bonds? No, the dollar is weak, US interest rates suck, nobdoy wants the dollar.
What's happening, is that the rich middle east and china are BUYING UP american companies and assets, at bargain basement prices, taking advantage of the weak dollar and our cheesy debt-ridden economy to buy our capital base and interior wealth.
Our "goods" deficit was still $199 billion. We imported 200bil more goods than we exported. Our manufacturing still sucks.
Now look at the little notice at the bottom of the article. "Oh yeah, by the way, just last month things were worse, and the goods deficit with china reached a new high".
http://www.msnbc.msn.com/id/22295425/
The Commerce Department reported Monday that the current account trade deficit fell by 5.5 percent to $178.5 billion in the July-September quarter. That was a better-than-expected showing and the smallest current account imbalance since a $173.4 billion deficit in the third quarter of 2005.
The current account is the most comprehensive measure of trade because it includes not only trade in products and services but also investment flows between countries.
The trade improvement reflects in part the decline of the dollar against many other major currencies. A weaker dollar makes U.S. products cheaper in foreign markets while making foreign goods more expensive for American consumers.
The deficit in goods shrank by 2.2 percent to $199.7 billion in the third quarter as record levels of export sales helped offset a rising foreign oil bill.
The surplus in services, items such as airline tickets and consulting fees, increased by 3 percent to $26.5 billion. The surplus in investment income flows surged by 61.5 percent to $20.5 billion. The only deterioration occurred in the category that includes foreign aid, which rose to $25.8 billion, up from $23.2 billion the previous quarter.
The decline in the current account deficit left it a 5.1 percent of the country's total economic output, down from 5.5 percent from the second quarter. That was the lowest level in terms of GDP since the first quarter of 2004.
The government reported last week that the monthly deficit in just goods and services rose in October to $57.8 billion, reflecting record oil prices and a record deficit with China. While it was the highest monthly imbalance since July, economists are still looking for the deficit for the year to decline as American manufacturers see export gains from the weaker dollar and stronger growth overseas.