US Trade Deficit Rises To 5-Month High of $55.5B in May

The U.S. trade deficit rose to a five-month high in May as the politically sensitive imbalances with China and Mexico widened. The Commerce Department said Wednesday that the gap between the goods and services the U.S. sells and what it buys from foreign countries rose 8.4% to $55.5 billion in May, the highest since December. Exports increased 2% to $210.6 billion on rising shipments of soybeans, aircraft and cars. But imports climbed more — 3.3% to $266.2 billion — on an increase in crude oil and cellphones. The deficit in the trade of goods with Mexico rose 18.1% to a record $9.6 billion. The goods gap with China widened 12.2% to $30.2 billion. President Donald Trump has sought to reduce America’s persistent trade deficit, which he sees as a sign of economic weakness and the result of bad trade agreements crafted by naive U.S. negotiators. He has slapped tariffs on foreign steel, aluminum, dishwashers, solar panels and on thousands of Chinese goods. He also has renegotiated a trade pact with Canada and Mexico that awaits approval by Congress.
And his team has conducted 11 rounds of talks with China aimed at pressuring Beijing to curb its aggressive push to challenge American technological dominance, an effort that allegedly includes cybertheft and forcing foreign firms to hand over trade secrets. Mainstream economists say the trade gap is the product of economic factors that don’t respond much to changes in trade policy: Americans buy more than they produce, and imports fill the gap. And a persistently strong U.S. dollar also puts American exporters at a price disadvantage overseas. So far this year, the goods-and-services deficit is $261.4 billion, up 6.4% from January-May 2018.

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So, is recession next step?

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This graph says more than thousands words..

 

image.png.258b8a95f4a17af83a9e5cbfc0aa0246.png

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6 hours ago, ThunderBlade said:

The U.S. trade deficit rose to a five-month high in May as the politically sensitive imbalances with China and Mexico widened. The Commerce Department said Wednesday that the gap between the goods and services the U.S. sells and what it buys from foreign countries rose 8.4% to $55.5 billion in May, the highest since December. Exports increased 2% to $210.6 billion on rising shipments of soybeans, aircraft and cars. But imports climbed more — 3.3% to $266.2 billion — on an increase in crude oil and cellphones. The deficit in the trade of goods with Mexico rose 18.1% to a record $9.6 billion. The goods gap with China widened 12.2% to $30.2 billion. President Donald Trump has sought to reduce America’s persistent trade deficit, which he sees as a sign of economic weakness and the result of bad trade agreements crafted by naive U.S. negotiators. He has slapped tariffs on foreign steel, aluminum, dishwashers, solar panels and on thousands of Chinese goods. He also has renegotiated a trade pact with Canada and Mexico that awaits approval by Congress.
And his team has conducted 11 rounds of talks with China aimed at pressuring Beijing to curb its aggressive push to challenge American technological dominance, an effort that allegedly includes cybertheft and forcing foreign firms to hand over trade secrets. Mainstream economists say the trade gap is the product of economic factors that don’t respond much to changes in trade policy: Americans buy more than they produce, and imports fill the gap. And a persistently strong U.S. dollar also puts American exporters at a price disadvantage overseas. So far this year, the goods-and-services deficit is $261.4 billion, up 6.4% from January-May 2018.

#Fail

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21 minutes ago, Enthalpic said:

#Fail

Yes, well at least he isn't Trudeau

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(edited)

18 minutes ago, Ward Smith said:

Yes, well at least he isn't Trudeau

I guess,

https://www.cbc.ca/news/business/trade-surplus-may-1.5198339

"With the U.S. specifically, Canada's trade surplus widened to $5.9 billion, the widest gap in more than a decade."

 

Edited by Enthalpic

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The answer is for people to learn to save and live within their means. Check out the crowds at restaurants and bars on Friday and Saturday nights. Good luck finding a nice place to eat out those two nights. Help wanted signs are everywhere. Schools need to teach the importance of economical living and saving for the future. 

Affordable housing is difficult to find in many areas. In others, you can buy an inexpensive house with no problem. Buying is usually a lot cheaper than renting in those areas.

 

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3 minutes ago, ronwagn said:

The answer is for people to learn to save and live within their means. Check out the crowds at restaurants and bars on Friday and Saturday nights. Good luck finding a nice place to eat out those two nights. Help wanted signs are everywhere. Schools need to teach the importance of economical living and saving for the future. 

Affordable housing is difficult to find in many areas. In others, you can buy an inexpensive house with no problem. Buying is usually a lot cheaper than renting in those areas.

 

But those business owners create jobs and wealth that "trickles down!" HaHa - does anyone still believe in trickle down?

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12 hours ago, Enthalpic said:

But those business owners create jobs and wealth that "trickles down!" HaHa - does anyone still believe in trickle down?

I guess by the fact that the business owners are creating jobs, that the wealth is trickling down. Wouldn't you agree?

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13 hours ago, Enthalpic said:

But those business owners create jobs and wealth that "trickles down!" HaHa - does anyone still believe in trickle down?

Nothing is perfect but still prefer this to the idiotic redistribution mentality that is constantly shoved down our throats.

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(edited)

7 hours ago, Douglas Buckland said:

I guess by the fact that the business owners are creating jobs, that the wealth is trickling down. Wouldn't you agree?

A subsistence living trickles down, the wealth goes upwards.

Its always been that way; those who own the means of production (often by inheritance) get wealthy the rest are basically wage slaves.  With the odd exception of course.

Edited by Enthalpic
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You seem to feel that business owners who actually put in the time and money to build the business, whatever it may be, should be compelled to share the profits with their employees?

Who said anything about a 'subsistence living'? You make the assumption that every employee of any business is paid poorly.

If someone inherits a business, it indicates that someone in the family took the effort to create and build it. If they get wealthy it does not mean they are treating employees poorly.

If people feel they are treated unfairly and are simply wage slaves, quit your job and start your own business. Apple and Microsoft started in a garage!

You really need to stop blaming others for your position in life (assuming you are a wage slave) and take some responsibility for it.

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7 hours ago, Enthalpic said:

A subsistence living trickles down, the wealth goes upwards.

Its always been that way; those who own the means of production (often by inheritance) get wealthy the rest are basically wage slaves.  With the odd exception of course.

You have perfectly described Canada.  Montreal, the historic center of Canadian finance and wealth building, had a district Running along Sherbrooke Street from Guy to University, called the "Golden Mile."  The wealthy families of Canada then built their huge mansions in the Mile, and the peasants got to starve on the outskirts.  And the French habitants were brutally treated.  I know one fellow from Lac St.Jean, who migrated down to Montreal during the Depression and got work hand sawing ice blocks out of the St. Lawrence River, to provide refrigeration for the rich folks living inside the Golden Mile.  He got paid less than crumbs. 

Those wealthy families that ran Canada, only about one hundred of them, migrated West to Toronto, families such as the Eatons, and set up a parallel Golden Mile just North of Downtown, their own private enclave, and lord it over the rest.  They control the Canadian Senate, and ensure that inheritance laws and litigation laws are structured to preserve their great wealth.  Canada is less likely that the USA to provide an upward economic channel. The path into the Middle Class is only through a Government Job - not through entrepreneurship.  Think about the implications of that. 

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On 7/3/2019 at 4:32 PM, Enthalpic said:

I guess,

https://www.cbc.ca/news/business/trade-surplus-may-1.5198339

"With the U.S. specifically, Canada's trade surplus widened to $5.9 billion, the widest gap in more than a decade."

 

Canada is able to have an export surplus with the USA for precisely one reason:  Canada's currency has deteriorated so far, so fast, that its Dollar, usually around parity, has sunk to 60 cents.  Hey, with that kind of discount, even a complete moron can export.  And imports get so expensive that nobody inside Canada will buy them, and that is even before you add on the Canadian tariffs. 

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1 hour ago, Douglas Buckland said:

You seem to feel that business owners who actually put in the time and money to build the business, whatever it may be, should be compelled to share the profits with their employees?

Who said anything about a 'subsistence living'? You make the assumption that every employee of any business is paid poorly.

If someone inherits a business, it indicates that someone in the family took the effort to create and build it. If they get wealthy it does not mean they are treating employees poorly.

If people feel they are treated unfairly and are simply wage slaves, quit your job and start your own business. Apple and Microsoft started in a garage!

You really need to stop blaming others for your position in life (assuming you are a wage slave) and take some responsibility for it.

It was in reference to restaurant and bar employees - other than a few at the top it's not really gainful employment.

My position is fine; I was a government slave for many years but lack of kids and investments got me out. 

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Restaurant and bar employees generally take those jobs for the tips and no tax paid. These jobs were never intended as employment which would allow buying a home, raising a family, etc...

These jobs have now been highjacked by workers who demand a 20% tip regardless of the quality of service. Many folks just refuse to eat out these days because of this.

If you are going to mandate a set minimum tip, include the tip in the cost of the entree so that the customer knows in advance the actual cost of the meal!

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17 minutes ago, Jan van Eck said:

The path into the Middle Class is only through a Government Job - not through entrepreneurship.  Think about the implications of that. 

I went that route - it's possible but not that pleasant despite the rumors of how great working for the gov't is.

The phrase "water cooler chat" always amused me.  Your employer will buy you bottled water?

Coffee in the break room?  Spoiled... cut that waste... of course then the breakers start blowing all the time because everyone is running a private coffee maker in their office simultaneously. 

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(edited)

5 minutes ago, Douglas Buckland said:

Restaurant and bar employees generally take those jobs for the tips and no tax paid. These jobs were never intended as employment which would allow buying a home, raising a family, etc...

These jobs have now been highjacked by workers who demand a 20% tip regardless of the quality of service. Many folks just refuse to eat out these days because of this.

If you are going to mandate a set minimum tip, include the tip in the cost of the entree so that the customer knows in advance the actual cost of the meal!

Common for auto tip of ~15% for groups of 6 or more here.

You have to claim a tiny bit of tip income or you will get investigated.

Edited by Enthalpic

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25 minutes ago, Jan van Eck said:

Canada is able to have an export surplus with the USA for precisely one reason:  Canada's currency has deteriorated so far, so fast, that its Dollar, usually around parity, has sunk to 60 cents.  Hey, with that kind of discount, even a complete moron can export.  And imports get so expensive that nobody inside Canada will buy them, and that is even before you add on the Canadian tariffs. 

It's not that bad... 0.77 today and the loonie is purposely kept low for export advantages.

Sucks when traveling for sure.

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27 minutes ago, Enthalpic said:

Common for auto tip of ~15% for groups of 6 or more here.

You have to claim a tiny bit of tip income or you will get investigated.

So what is the expected autotip for any other group or a singleton?

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(edited)

6 hours ago, Enthalpic said:

the loonie is purposely kept low for export advantages.

The loonie is a floating currency and the Fed. Govt. has no control over where it floats.  That is set by market traders in the currencies, typically bank in-house traders.  Getting past that, Canada is a nation with relatively few domestic-manufactures, and thus is an importing nation.  A depressed loonie acts to impoverish the Canadians by creating a wealth transfer tax to vendors from outside.  Yes, you can export more volume, but if your volume (say, of Canada Wheat) is constant anyway, or at least limited by the physical capacity of the crop, what is the advantage of giving away a third of the value?  None. 

When Bombardier is dealing with their rail trainsets, yes a devalued loonie helps them in bids against the American builders.  But that is for naught when you factor in that Bombardier is now blocked from bids into the big NYC subway system, due to such poor performance in the past.  So, all it does is drive up the costs for imported components (remember, Bombardier imports rail stuff from Europe, where it has lots of plants) that it assembles into its domestic products.  That drives up the domestic pricing for streetcars out of Thunder By and rail cars out of Quebec.  Not so great; in effect, it means more domestic municipal tax dollars spent for the same equipment.  Hardly a great state of affairs. 

The loonie is a devalued currency because the Canadians have screwed it up.  OK, so go blame the Trudeau government, works for me.

Edited by Jan van Eck
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1 minute ago, Douglas Buckland said:

So what is the expected autotip for any other group or a singleton?

Whatever you want - it's just not automatically added to your bill (10 - 15% is normal gratuity if your service was good, less for big tabs and way more for single-mom breakfast waitresses).

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2 minutes ago, Enthalpic said:

and way more for single-mom breakfast waitresses)

If I know that the breakfast waitress is a single mom, I slide her a twenty.  She really needs it. That is a seriously poverty-stricken job. 

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