Posted on 01/17/2005 10:22:54 AM PST by jb6
NEW YORK (AFP) - US Treasury Secretary John Snow said the record US trade deficit was the result of strong economic growth and the United States outpacing the growth of other countries.
AFP/DDP/File Photo
"The trade gap reflects two things: that our economy is growing at a fast pace and we are growing faster than our trading partners," Snow told reporters.
The United States posted a record trade deficit in November, the government said Wednesday.
The Commerce Department (news - web sites) estimated that US exports sank 2.3 percent in November, driving the US trade deficit to all-time high of 60.3 billion dollars.
While exports fell to a five-month low of 95.6 billion dollars, imports rose 1.3 percent to a record 155.8 billion as the bill for imported oil rose by 17.7 percent, or more than 2 billion dollars, to a record 14.2 billion
Some dont have a clue. Snow is one. So we got more money going out than whats coming in. Sooner or later it'll all get us.
ping
"The trade gap reflects two things: that our economy is growing at a fast pace and we are growing faster than our trading partners," Snow told reporters.
Since our biggest trade deficit is with China our economy must be growing at a much faster rate than China?
Does he really believe this nonsense, or is this spin?
Snow knows the score.
He's just a baldfaced liar.
"Since our biggest trade deficit is with China our economy must be growing at a much faster rate than China?"
If anybody believes that, there's a bridge in Brooklyn for sale.
Still USA is behind Argentina.
"Let London manufacture those fine fabrics of hers to her heart's content; let Holland her chambrays; Florence her cloth; the Indies their beaver and vicuna; Milan her brocade, Italy and Flanders their linens...so long as our capital can enjoy them; the only thing it proves is that all nations train their journeymen for Madrid, and that Madrid is the queen of Parliaments, for all the world serves her and she serves nobody."
(Prominent Spanish official - Alfonso Nunez de Castro in 1675)
Its not a zero sum game, otherwise you might be onto something.
It is not - the total sum can be negative or ...
Not every growth of economy/GDP is good. For example if the US economy consisted of two families - one with the income of 20K per year and another of 80K. If you reformed economy that the first gets 10K and second gets 100K you will have 10% growth and a disaster!
True. But if Mr. $80K works his tail off and earns $100K, then buys extra widgets form Mr. $20K so that he now is earning $25K, then both are winners.
I never liked the arguments that the Rich get Richer at the poors' expense.
Snow has to say anything that will keep the communist Chinese buying our Federal debt instruments. Last year, they supplanted the British banks as the world's major supporter of the Federal Government's profligacy.
But it is often true. For example while people like Gusinsky, Bierezovsky and Khordorkovsky "worked their tail off" so much that they became multi-billionaires while millions of Russians dids out of misery and malnutrition (the life expectancy dropped like a stone). And indeed, these "democratic pro-Western reforms" of Yeltsin years were not a zero sum game as the sum was negative.
Snow is F.O.S.!
Let's see how this 'snow' jobs works. We buy from China and send them dollars. China loans us the dollars back on our credit card. We use these dollars to buy more goods from China. Unbroken growth all around. Of course, the next generation gets the bills for the credit cards. I love it when a plan comes together.
Comes togather or piles up?
I really am not commenting on Snow's statement, but here are some things to consider. The US is an 11 trillion dollar economy. Grow 3% and that's a growth in real dollars of 330 billion.
China is about a 1 trillion dollar economy. Grow at 10% and that's a growth in real dollars of 100 billion.
If you get a raise, that in real dollars is 3 times that of your neighbors you can by extension buy more from them than they buys from you. After all, what's one likely thing to occur when you get a raise? Your expendatures will rise. If your neighbor's income stays flat or rises little, how much extra are they going to buy from you? Do you think that an account balance of dollars will remain even between you and all your neighbors if you have extra money and choses to spend it?
Oh, I agree with you there. The kleptocracies of the commie world helped very few. I wouldn't put the US in that category.
The Trade Deficit is a result of massive borrowing by Americans.
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