summary: international trading problems

  1. 22,691 Posts.
    The US Import/Export problem remains and the necessary restructuring will only result in a sharp deterioration of the standard of living. However, the Leaders won't take unpopular decisions.

    Basically, the Far East countries save a lot while the US spends a lot.

    The Far East exports a lot while the US exports little. 30% of China's exports go to the US while the US imports 40% from China.

    If the economic US situation improves that will result in more imports being sucked in.

    Regardless of the positive spin, the trade and budget deficits increase. The situation in Iraq is bad.
    Europe is of little help as their economies are not functioning that well. So the US has little hope of exporting more to Europe.

    Above all is this massive problem of outsourcing discussed earlier.

    This week will see the Current Account Deficit data.

    As to the increase of 274,000 on the payroll yesterday, apparently 27,000 jobs were real and the other 257,000 were computer generated.

    The extent of misuse of data is shown here:
    John Williams'
    Shadow Government Statistics
    Analysis Behind and Beyond Government Economic Reporting

    Greenspan Warns on Fannie, Freddie Again;_ylt=AqWaX_o1w9ole7llKyI.QvyyBhIF;_ylu=X3oDMTBiMW04NW9mBHNlYwMlJVRPUCUl

    Third hour with Jim and John:

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