View Full Version : US Exports At Record Levels

04-02-2012, 10:05 PM
US Exports At Record Levels Putting GOP Campaign Strategy On Life Support
April 2, 2012
By Justin "Filthy Liberal Scum" Rosario
Addicting Information (http://www.addictinginfo.org/2012/04/02/us-exports-at-record-levels-putting-gop-campaign-strategy-on-life-support/)

Since President Obama took office in 2009, exports to China have jumped almost 25% to just short of $104 billion. This is an indisputable sign that the economy is not only getting stronger but doing so in a sustainable fashion not reliant on a bubble. Since the GOP’s entire campaign strategy so far has been based on Obama’s supposed economic incompetence, this is terrible news for Mitt Romney. But great news for America. Such is the conundrum of modern-day Republican politics.

Any economist will tell you that exports are the lifeblood of a growing economy and that a trade imbalance is unhealthy in the long run. Of particular note has been our imbalance with China; we import hundreds of billions of dollars of product (446.65 bl last year alone) but until 2001, when China entered the WTO, the United States made very little headway in reducing that discrepancy. Of greater note is the fact that, after the recession, when the Obama administration’s “anti-business” policies began to take effect, our domestic manufacturing increased dramatically and the trade imbalance narrowed more than at any previous point in the last twenty years.

If this is the face of a faltering economy, the GOP has some grandiose economic theories and very little real world data to back it up. Add to this that Wall Street is making record profits and the stock market is closing in on its pre-recession highs and there is no substance to the accusations that Obama has “made the economy worse.” Another important piece of the economic puzzle is that instead of a quick fix, President Obama has taken a slower, more deliberate pace and focused on rebuilding the economy with systemic corrections. This means the market can weather fluctuations far better than before and that stability will only grow as the recovery matures.

While Republicans complain about fake uncertainty, the Democrats have quietly rebuilt the foundations we all stand on.


04-03-2012, 01:19 PM
Well, if this continues to increase then giving Obama the credit will be a hard pill to swallow. This is only because I don't think he has had a single thing to do with it but in the past we have given the President credit for these types of things so as painful as it might be to do it again I guess that is only fair.


04-03-2012, 01:33 PM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: DiabloViejo</div><div class="ubbcode-body">US Exports At Record Levels Putting GOP Campaign Strategy On Life Support
April 2, 2012
By Justin "Filthy Liberal Scum" Rosario
Addicting Information (http://www.addictinginfo.org/2012/04/02/us-exports-at-record-levels-putting-gop-campaign-strategy-on-life-support/)

Since President Obama took office in 2009, exports to China have jumped almost 25% to just short of $104 billion. This is an indisputable sign that the economy is not only getting stronger but doing so in a sustainable fashion not reliant on a bubble. </div></div>

Actually it's a mirage created by the destruction in value of the US dollar ... but, it was the lie you wanted to hear so who cares, right.

04-03-2012, 03:52 PM
It's widely argued by all parties that the Chinese yuan is artificially kept low, as part of their own trade strategy.

If the dollar has indeed fallen in value to it, it's just as possible that the yuan has rather risen in value, as it should have been for a long time.

In fact, I don't think you'll see either currency much changed with regard to the other.

Besides, the destruction of the dollar, if that's the reason, long predates this presidency, having occurred last century.

By an actual recent comparison, you will note the nominal difference in the yuan to the dollar plateaued out as of about 2008. (The 'real' value includes cost of wages in each country.


Chart from the Economist, here (http://www.economist.com/node/17420096)

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">The yuan-dollar exchange rate
Nominally cheap or really dear?
China’s exchange rate has risen faster than you think. Really

Nov 4th 2010 | Hong kong | from the print edition

AMERICAN manufacturers complain that China undervalues its exchange rate. But which one? The nominal exchange rate is now 6.67 yuan to the dollar, having strengthened by almost 2% since September 5th (when Larry Summers, an adviser to President Barack Obama, flew to Beijing to complain about the currency in person) and by 24% since 2005.

But China’s real exchange rate with America has strengthened by almost 50% since 2005, according to calculations by The Economist (see chart). A real exchange rate takes account of price movements in each country. If prices rise faster in China than in America, China’s real exchange rate goes up, even if its nominal exchange rate stays the same. That’s because higher prices at home make China’s firms less competitive abroad, just as if their currency had gone up.

To calculate the real exchange rate, you need a gauge of prices in each country. Many economists use the consumer-price index (CPI). But the CPI contains lots of goods and services (such as housing rents) that cannot be traded across borders. Our measure of the real exchange rate, which we will regularly update, offers a more direct measure of competitiveness by looking instead at unit labour costs: the price of labour per widget. These costs go up when wages rise or productivity (widgets per worker) falls. In American manufacturing, unit labour costs have risen by less than 4% since the first quarter of 2005, according to the Bureau of Labour Statistics. In Chinese industry they have risen by 25% over that period, according to our sums. </div></div>

04-03-2012, 04:04 PM
When China owns more than half of the usofa, will it then be better to hav the dollar up or down. Tricky.

04-03-2012, 04:14 PM
Own more than half the USA?

They don't even own half the debt, or 25% of the debt, for that matter. Around $1 trillion of our public debt, not much more than that, and they've stopped buying it to any great degree, some years back now.

04-03-2012, 04:29 PM
China must be kicking itself for not buying Ozz when it woz cheap. At prezent boatloads of Ozz iz going to China every day. They kood hav bort the whole joint.

Looks funny, boatloads of ore and gas going -- passing boatloads of muslims kumming.
Pretty soon Ozz will be a hole full of muslims.

04-04-2012, 04:05 AM
Your problem is that you assume that the dollar and the yuan are actual currency as opposed to fiat currency.

If you use gold as a standard you get a more accurate ... but not state approved ... picture.

04-04-2012, 09:59 AM
You have SO many formulaic expressions you use without any apparent knowledge of them.

Funny how that works.

The distinction you are trying to draw here is both obvious, and incorrect for the purpose.

Of course, the USD and the Chinese yuan, LIKE ALL OTHER CURRENCIES SIGNIFICANT IN THE WORLD TODAY (maybe an exception for the Isle of Guernsey, but it has no international reach), are fiat currencies, not backed by a set measure of a commodity like gold per unit of currency.

Since the USD and the yuan track each other closely within a range, the price of gold in EITHER currency has been going up, with the only difference between their respective values to gold the same relative difference in their exchange values.

That is, you cannot use their values to gold to show a thing, except a claim that both are losing their value to gold, OR that gold being more sought after by so many world actors (China and India, central banks, etc.) has seen its price rise in a wholly understandable supply/demand equation (having nothing to do with alleged currency devaluations).