Posted on 11/12/2004 6:39:20 AM PST by 1rudeboy
By Christopher Swann in Washington
Published: November 10 2004 13:51 | Last updated: November 10 2004 13:51
The US trade deficit narrowed unexpectedly in September, reflecting a fall in energy imports and a pick up in exports, according to data released on Wednesday.
The trade shortfall fell by $1.9bn to $51.6bn, compared with forecasts of a deficit of about $53.5bn.
The figures pointed to a stronger performance by US exporters. Exports of goods climbed by $900m to $68.9bn, offsetting a $100m fall in service exports to $28.5bn. Sales of semiconductors, computers and food were particularly strong.
HSBC said the improvement in the trade position could lead to an upward revision to economic growth in the third quarter from 3.7 per cent to 4 per cent.
In addition to the rise in exports, the deficit was reduced by a fall in energy imports. Despite a 3.5 per cent rise in the price of energy per unit, the total import bill fell by $500m to $124.5bn due to a 10 per cent decline in volumes. Imports of pharmaceuticals, semi-conductors and computers also fell.
Economists said the figures were encouraging but many expect the deficit to widen again, since US growth continues to outpace the expansion in Japan or the eurozone.
Goldman Sachs dismissed suggestions that the improvement in September was due to the hurricanes in the south-east of the US, pointing out that most ports were unaffected. But in a research note published on Tuesday it said the report was unlikely to signal a turning point in the trade deficit.
The figures did little to help the dollar, which has been edging to new lows against the euro. On Wednesday, the euro hit a record high against the dollar at $1.305 before falling back to around $1.29.
Analysts have become increasingly pessimistic over the outlook for the dollar after the currency failed to rally in response to there-election of President George W. Bush and a dramatic improvement in the employment figures. The strong jobs figures at the end of last week were seen as a mixed blessing for the dollar, increasing confidence in robust growth and higher investment returns but also underlining that the deficit may expand further if US growth accelerates.
Many economists say the dollar will increasingly be dragged down by the bloated US current account deficit, despite interest rate rises by the Federal Reserve.
Import prices for October were also released yesterday showing a 1.5 per cent rise in October. This largely reflected an 11.7 per cent rise in petroleum prices.
Yes, and shortages OF refineries are due to transnational corporate types.
>>>>We have more people working now than we ever did. They are making (on average) more money than they ever did.<<<<<
They may be earning more dollars on average and they may even have more purchasing power (on average) but in my neck of the woods there are an awful lot of people who are enjoying a lower standard of living these days and many of those who appear to be doing well owe more than all their possessions are worth. I am not advocating government interference because I think the government was very instrumental in creating the situation but things are not all that rosy around here. I could introduce you to a large group of people who are actually earning fewer dollars in nominal terms than they earned twenty years ago, after adjusting for inflation these people are living far below the level they formerly enjoyed.
I believe the best thing we could do right now is destroy the IRS and adopt the fair tax plan.
>>>>We have more people working now than we ever did. They are making (on average) more money than they ever did.<<<<<
They may be earning more dollars on average and they may even have more purchasing power (on average) but in my neck of the woods there are an awful lot of people who are enjoying a lower standard of living these days and many of those who appear to be doing well owe more than all their possessions are worth. I am not advocating government interference because I think the government was very instrumental in creating the situation but things are not all that rosy around here. I could introduce you to a large group of people who are actually earning fewer dollars in nominal terms than they earned twenty years ago, after adjusting for inflation these people are living far below the level they formerly enjoyed.
I believe the best thing we could do right now is destroy the IRS and adopt the fair tax plan.
Maybe I'll reconsider my position when one of the biggest 3 employers in America is someone other than the gov't, Walmart, or McDonalds.
Or perhaps when I can go to Home Depot and find something made in America.
Maybe you can begin to reconsider your position now, and avoid the rush . . . what do the above have to do with the trade deficit? Are you suggesting that a trade surplus would decrease employment at those three employers?
A trade surplus would mean more things made in America, so there would be a shift from service jobs to manufacturing/design jobs.
And how do you propose creating a trade surplus? At the point of a gun? What makes you think those products you target will be cheaper? I can see it now . . . American manufacturers flooding into a market with non-existent or slim profit margins. Sounds like a recipe for success.
Refined petroleum is magically "produced" at the pump. Because the price of gas is generally up, that means that the pump thingie is a victim of globalism. Don't you know if the price of gasoline dropped, the Chinese would buy less of it? Jeez.
A fair trade policy, for starters.
The tariffs should be no lower than the highest internal tax rate in America.
Yep. Considering they already pay *no* US corporate rate.
bzzzzt. Wrong answer. In fact, a response such as yours should automatically disqualify you from discussing corporate tax policy in any fashion.
Check out the above. Where does Pat Buchanan find these people? ROFLMAO
Think he agrees with Marx?
"Speculators have also had an influence.
The price of oil has been falling lately. Does that mean that globalization is diminishing?
"
Based on action in the crude market right before the election and since, it appears that 10-15% at least of crude prices was a combined pre-election terror and self-fulfilling rally.
Then he tries to say (imaginary) fallen production has something to do with refinery capacity.
Then he tries to shift the blame for reduced US oil exploration (caused by environmentalists) and increased Chinese demand onto "globalism".
Do you think he's ever heard of supply and demand? I wonder if he has some nifty quote from Jefferson or Marx that blames supply and demand on "globalism"?
But it's your thoughts why we will make it. It's the simple fact that we think in terms of supply and demand in the US. We are true capitalists and think that way; unlike most European nations where you have pseudo-free markets.
Example Germany again. There you have a nation where nearly 46% of the GDP is in some way state production or services. In the US you have about 19% and we consider this WAY to high. No one in Germany even sees this as an issue nor does it ever really come up in conversation.
There was NO concept of supply and demand when the Germans forced the "Gruene Punkt" on its economy. Fact is, there are only 3-4 things that are even worth recycling. So politics and "Environmentalism" over rode any common sense and the Germans now have one of the worlds most ambitious environmental programs which: Costs a lot and is not self supporting as in the US; and don't help the environment because many of the things being recycled use more energy to recycle than if produced new. Example paper. Paper has not and is not economically viable to recycle. The energy used to recycle paper is MORE than producing it new. That is not even counting the logistics involved. Examples such as this are endless. German energy, education, defense, medical politics are all heavily influenced by idiology rather than the bottom line. Even in the US we have examples of how governements manage things. California has had years of growth in energy demand and yet which politician wanted to say "I'm going to build you a few nuke plants". The all gave the consumer what they wanted. Words such as "alternative energy sources", "renewable energy sources" and so on. Now they have a new word in their vocabulary, "Brown out".
It don't matter if we talk about recycling programs or energy politics. These pseudo-market driven economies are all the same in that you have governments that have broad powers into production and services and where issues become politicized and ideology over rides any business sense. In the US, government as a whole simply has less influence, and this is a good thing since the bottom line manages the firm.
Red6
So a company wholly based in Timbuktu, which sells products in the United States, pays corporate tax to the US? What percentage do they pay?
Yes. In fact, a company based in Timbuktu, which manufactures products in the U.S., and ships them back to Timbuktu pays U.S. taxes as well. As for what percentage it pays, I'm sure a corporate tax attorney or an accountant/consultant specializing in such matters can help you out.
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