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Post by Savoir Faire-Demogague in NJ on Feb 10, 2012 11:06:04 GMT -5
Total U.S. Trade Sets New Record High in 2011 Total U.S. international trade (exports + imports) set a new record of $4.76 trillion in 2011 (see chart above), as both annual exports ($2.1 trillion) and imports ($2.66 trillion) reached record high levels last year, according to today's BEA report. (http://www.bea.gov/newsreleases/international/trade/2012/pdf/trad1211.pdf)  Other highlights include: 1. Total international trade increased in 2011 by 14% compared to 2010 ($4.175 trillion), and was 35% above the recession-related cyclical low of $3.53 trillion in 2009. Adjusted for inflation, the increases were 10.5% vs. 2010 and 28.6% vs. 2009. 2. Compared to the previous all-time record high in 2008, total trade for the U.S. last year was above that previous record by 8.7% in nominal terms and by 4% adjusted for inflation. 3. U.S. exports exceeded $2 trillion for the first time ever last year and increased by 14.5% from 2010 and by 33.5% from the recession-related cyclical low in 2009. 4. U.S. consumers and businesses purchased a new record high volume of $2.66 trillion worth of consumer products, raw materials and inputs from the rest of the world, which was an increase of 13.8% from the previous year, and 36% more than in 2009. Bottom Line: What is already getting the most media attention about today's trade report is the "bad news" that: a) the U.S. trade deficit increased in December and for the year, b) the trade deficit with China "soared to a record high" last year, and c) the reason for the trade deficit with China is because it "deliberately undervalues its currency to give its companies Americans an unfair a generous price advantage." What won't receive much (any?) media attention is the good news that the total U.S. trade activity (Exports + Imports) set a record high in 2011, reflecting the improvement in both the U.S. and world economies last year. Foreigner consumers and producers purchased a record volume of "Made in the USA" exports, and American consumers and producers purchased a record volume of "Made Outside the USA" imports, which is a positive sign of worldwide economic recovery and vibrancy. As Dan Griswold pointed out last year on his blog: "Politicians and commentators love to focus on the deficit, as though it were a scorecard of who is winning in global trade, but the real measure is the total volume of trade. As economies expand, so does trade, both imports and exports. Exports help us reach new markets and expand economies of scale, while imports bless consumers with lower prices and more choices, while stoking competition, innovation, and efficiency gains among producers." |
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reasonfreedom
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Post by reasonfreedom on Feb 10, 2012 11:13:02 GMT -5
That is weird. If increasing trade makes prices go down, then why are prices increasing? Food, Gas ect ect.
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Post by Savoir Faire-Demogague in NJ on Feb 10, 2012 11:18:08 GMT -5
That is weird. If increasing trade makes prices go down, then why are prices increasing? Food, Gas ect ect. What are the "etc. etc." products? You've noted two product segments out of 1000s. |
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rockon
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Post by rockon on Feb 10, 2012 11:23:43 GMT -5
Make sure you also read the part that says imports from China also hit a new record.
Rising gas and food prices affect the price of thousands if not all other prices.
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Driftr
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Post by Driftr on Feb 10, 2012 11:26:02 GMT -5
That is weird. If increasing trade makes prices go down, then why are prices increasing? Food, Gas ect ect. What are the "etc. etc." products? You've noted two product segments out of 1000s. It'd be a lot easier to list the categories that have decreases. www.bls.gov/cpi/#tablesEdit - Look around pages 9-10 on the pdfs if anyone wants to see the details. |
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Deleted
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Post by Deleted on Feb 10, 2012 11:31:07 GMT -5
"Politicians and commentators love to focus on the deficit, as though it were a scorecard of who is winning in global trade,
To me that's one of the dumbest statements that I've ever seen. Politicians & commentators (& us common people) focus on the deficit because it shows that we are spending more than we take in, nothing more or less. That is an indicator that things need to change. While global trade does have something to do with the deficit, the deficit is a problem itself. We could double the amount of global trade that we do & if we increased spending even 50% we will still sooner or later go broke.
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Deleted
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Post by Deleted on Feb 10, 2012 11:32:03 GMT -5
That is weird. If increasing trade makes prices go down, then why are prices increasing? Food, Gas ect ect. What are the "etc. etc." products? You've noted two product segments out of 1000s. Since food and fuel are usually the largest % of a household budget leaving those items out when reporting core inflation doesn't take away the financial pain of their existence. |
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reasonfreedom
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Post by reasonfreedom on Feb 10, 2012 11:45:27 GMT -5
What are the "etc. etc." products? You've noted two product segments out of 1000s. Since food and fuel are usually the largest % of a household budget leaving those items out when reporting core inflation doesn't take away the financial pain of their existence. Yeah I agree, most of my money is spent on food, gas and rent(plan on getting a house soon). All three of these prices increased beyond my 3% raise, which I believe is got to be close to the average. |
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Post by Savoir Faire-Demogague in NJ on Feb 10, 2012 12:04:45 GMT -5
Since food and fuel are usually the largest % of a household budget leaving those items out when reporting core inflation doesn't take away the financial pain of their existence.
You are correct if we are discussing inflation. But the thread is about imports and exports.
Imports rising means we are spending more.
Exports rising means we are finding new markets for goods made in the US, and/or existing countries are buying more of what we make.
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Deleted
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Post by Deleted on Feb 10, 2012 12:18:49 GMT -5
"Since food and fuel are usually the largest % of a household budget leaving those items out when reporting core inflation doesn't take away the financial pain of their existence."
The gov't reports total inflation, which includes food and energy. "Core" inflation is also reported. Economic decisions are made on the former, not the latter.
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Deleted
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Post by Deleted on Feb 10, 2012 12:31:04 GMT -5
jma23 ducks his head and runs for cover in this non-inflationary thread.
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Deleted
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Post by Deleted on Feb 10, 2012 14:23:29 GMT -5
Yeah, you better run....  Good posting, SF. Now that it's an election year, I notice the media now suddenly highlighting that a lot of stuff is actually Made in America. Funny how that works. Just a year or two ago, you'd've thunk that nothing was made here. Must be Obama we have to thank for the dramatic turnaround!!!!! Yea!!!!! |
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Post by Savoir Faire-Demogague in NJ on Feb 11, 2012 7:30:27 GMT -5
2011 Was Best Year Ever for California Exports www.latimes.com/business/money/la-fi-mo-california-trade-20120210,0,4167926.story Despite an 11.1% jobless rate in December that was the highest in the country except for Nevada's 12.6% rate, the LA Times is reporting that California's exports surged to a new record high of $159.35 billion in 2011. That was an 11.2% increase over 2010, and after adjusting for inflation, exports last year surpassed the previous historical high in 2000 during the "dot-com" boom. From the LA Times article: "Despite a widespread conviction that California has been closed for business, 2011 turned out to be the best year ever for California’s export trade,” said Jock O’Connell, Beacon Economics’ international trade advisor. Also encouraging was the fact that the exports were led by sales of high-technology goods such as electronics products, industrial machinery and medical equipment, the Beacon report said._______________________________________________________________ So we import carp from China, textiles, plastic junk, etc....meanwhile we export high end merchandise manufactured by high skilled, highly educated workers. |
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Post by Savoir Faire-Demogague in NJ on Feb 11, 2012 7:32:01 GMT -5
That is weird. If increasing trade makes prices go down, then why are prices increasing? Food, Gas ect ect. I can speak to gas(ie: energy): Falling Nat Gas Prices Offset Higher Gasoline Prices Detroit News -- "Michigan's Consumers Energy said today that its residential natural gas customers are writing checks to the utility that are down about 20 percent compared to a year ago because of a warmer winter and lower natural gas prices. The Jackson-based utility with 1.7 million customers said an average residential customer this month will pay about $146 for heat they used in January, compared to about $184 a year ago. Bills for natural gas use in December, paid in January, also were down about $28 for the average residential customer from a year earlier, according to Consumers." www.detroitnews.com/article/20120210/BIZ/202100404/1361/Consumers-Energy-customers-saving-20--with-warmer-winter--natural-gas-prices |
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