US Trade Deficit Widens 17.5% in November

Source: https://www.investmentwatchblog.com/us-trade-deficit-widens-17-5-in-november/
Published: Jan 4, 2022
Author: staff
Post Date: 2022-01-04 13:37:52 by Horse
Views: 107

by Martin Armstrong

The US Trade deficit widened 17.5% in November, setting a new record. According to the US Commerce Department, the trade gap in goods increased from $83.2 billion in October to $97.8 billion in November. The number surpassed September’s posting of $97 billion.

Exports declined by 2.1%; however, imports are rising. The US imported $252.4 billion this November, a 4.7% MoM increase, with autos, industrial supplies, consumer goods, and food all experiencing notable gains. In addition, retail inventories rose 2%, while wholesale inventories rose 1.2%.

The US trade deficit has been high for years, and the gap continued to expand throughout 2021. January 2021 started off the new year by shattering the last deficit record posted in 2006. High trade deficits hurt America’s GDP standing, although the economy has been recovering faster than other developed nations.

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#1: DWornock    To: Horse (#0)

I'm surprised that people believe the trade deficit nonsense. If you look at the total picture, there is only balanced trade. It cannot be otherwise. If the USA sells more to China, for example, than we buy from China, China doesn't burn the dollars. Instead, they use the dollars to buy US treasuries, buy land, building, stock, or otherwise invest in the USA, or else they use the dollars to buy from other countries, who in turn, buy from the USA.

Customers buy more from Walmart than they sell to Walmart so that is a trade deficit. Walmart buys more products from other companies than the products they sell to other countries. That is a trade deficit. The companies pay their their employees that produce the products. That is a trade deficit. However, if you look at the overall picture, it is balanced trade. Except for short-term variations, whether is is trade between countries or trade by people, it is balanced trade. It cannot be otherwise.

DWornock posted on 2022-01-04 17:28:24   Reply   Private Reply