Skip to comments.China Posts A MONSTER Trade Surplus, As Exports Surge 44%
Posted on 07/11/2010 9:11:38 AM PDT by blam
China Posts A MONSTER Trade Surplus, As Exports Surge 44%
Jul. 11, 2010, 9:05 AM
The most-hyped economic event of the year was when for one month China actually showed a trade deficit.
That was back in May that it was announced, but it was a joke, purely an artifact of seasonal patterns and the Lunar New Year. Still a lot of folks ran with it, as though it was a big deal, calling for an imminent DEVALUATION of the yuan.
Chinas trade surplus widened to the highest this year and exports climbed more than estimated to a record in June, adding pressure on the government to let the currency gain after the U.S. said the yuan remains undervalued.
The gap increased 140 percent to $20.02 billion from a year earlier, the nations customs bureau said yesterday. That compares with the $15.6 billion median estimate of 24 economists Bloomberg News surveyed. Exports surged 44 percent and import growth moderated for the third month, rising 34 percent.
So yeah, so much for that rebalancing that everyone was talking about, and so much for an end to the yuan revaluation pressure.
Of course, the takeaway isn't all negative. Exports surged 44%! Feel free to keep worrying about your collapsing Baltic Dry Index.
(Excerpt) Read more at businessinsider.com ...
Anyone in Washington note that exporting is better than importing for the economy? Our economy has flatlined.
Bought a dehumidifier yesterday...Went to five different stores looking for an American made one...They don’t exist...
General Electric...Amana...Frigidaire...Sears...Every brand made in China...
We did it to ourselves and there is no fix...Get used to it...It’s only going to get worse...
What’s double bad is all these Chinese products are cheap crap - they don’t last and you have to rebuy them 2-3 years later. What a scam!
So what are the featured items at Walmart today?
china is actually in a great deal of financial trouble. Due to their crony-based, state-owned banking system, the Chinese have on the books trillions of dollars worth of bad loans that are sitting on the books and simply are being turned over and over again in the hopes that something magic will happen. Their profit margins are narrowing rapidly as millions and millions of brutalized workers on their Pacific coast begin to clamor for a fairer shake from their employers. This is forcing companies to move inland where transportation costs begin to skyrocket. Like the Japanese 20 years ago, the Chinese are exporting like mad because they’re desperate. It’s hard to imagine that they’re making much by way of profits on all of this. It’s like gunning and engine with the gear in neutral. It makes a lot of racket but it’s not getting them anywhere. When the financial crisis finally hits there, watch out. So far they’ve defied a good deal of economic reality, but IMHO the time for a reckoning is fast approaching.
Can America do better?