The trade deficit has widened yet again in the aftermath of the trade war. The gap increase was due, in part, to the increase in automobile imports from Mexico and other countries.
The U.S. trade deficit rose to $55.5 billion in May from $51.2 billion in April. It is now the highest it has been all year. The U.S. exports were up 2% in May, to $210.6 billion. The U.S. shipped more soybeans, autos and parts, passenger planes and networking equipment, according to Market Watch.
However, imports increased more widening the trade deficit. Imports increased a larger 3.3% to $266.2 billion. The U.S. imported more foreign autos, oil, semiconductors, computers, and cell phones. And auto imports hit a record high. In spite of the trade war and the tariffs, the U.S. is on track to record a larger annual deficit in 2019 than during the prior-year. This is because trade gaps have increased with other key partners such as Mexico, Europe, and Canada. The deficit with Mexico in May, for example, was the largest ever.
The widening trade deficit will also likely drop the GDP (gross domestic product). Exports have largely stalled in the United States while imports continue to rise.
The wild card is the ongoing trade fight with China that’s hurt both countries. The two sides agreed last week to put off pending tariffs and resume negotiations, though the outcome is far from certain. That’s likely to weigh on the U.S. and global economies for as long as the dispute drags on. –Market Watch
One of the goals of President Donald Trump’s trade war and the resulting tariffs was to close the trade deficit. But that makes the entire thing look like a farce as the one thing he’s attempting to prevent is happening at much larger rates. China and the U.S. have called off the pending tariffs and decided to return to negotiations. Let’s hope this time the trade war ends for good.
The average worker doesn’t have the money for any of the new junk out there. BTW, I finally got another old truck, 2003 Dodge Ram quad cab, 4.7L V8, only 130000 miles on it, for $5000 CASH. Yeah it needs a little work but it’s worth it to me. It’s a full size truck and will still work hard for someone yet I only had to pay $5000 for it. That beats the hell out of buying some $50000-$60000 electronic toy that would be more trouble than it’s worth. I stick with American brands; no foreign tinkertoys for me.
TDR,
You now own a computer with a fairly good engine.
I think, I read from your past comments, that you don’t
do much “wrenching”.
So my advice to get a laptop and OBDII interface would be
a waste of your time. Even if you could figure out the error
codes you would not know how to fix them.
The last repair I did, when a Temperature sensor failed
literally paid for a new laptop computer.
Dealers and most mechanics are not very computer competent
these days. Factories aren’t very informative.
For example my wifes car has two temperature sensors for water temperature, one is for you the driver, the other is for the computer to control your engine.
Unless something really goes wrong you only get to see
something that makes you happy. The other real temperature,
is being used to make sure US government mandated
political emissions and fuel usage is complied with.
I entirely agree that paying $60,000 for a vehicle that
you only drive on the freeway for commuting is nuts.
Rellik, my situation is what it is. I’ve got a mechanic in the family who is just as good with computers as he is with engines and he also has some Dodge products so I’m covered on that. I bought the truck 2 weeks ago. It was a one-owner but had been sitting up for a few years hence the lower than average mileage on it. It had some old leaks in the radiator and water pump not to mention the original hoses dry-rotted so then entire cooling system including thermostat has already been redone along with changing all the fluids. Also had a complete tuneup done on it and had the transmission serviced when we found one of the seals leaking. Now it only needs a brake job to be road ready. I’m driving it on the next trip to the BOL in August so that will be the real test for it. I looked at some older trucks before finding this one but they were too far gone to be any use to me. It still has fewer electronics and fewer things to go wrong than the newer ones so I should be OK. It’s not ideal but it’s the best thing I could find under the circumstances.
But that makes the entire thing look like a farce as the one thing he’s attempting to prevent is happening at much larger rates.
There is a nasty little secret. Trump is a bald-faced liar whose sole intention is to make Israel great again at America’s cost.
I see oil imports have increased at the same time oil exports have also increased. Oil production is up the last few years, but the type of oil being pumped is high API light crude and not suitable for middle distillate products like diesel, heating oil and jet fuel. Industrial civilization runs on diesel fuel variants, not feedstock for plastics. It also sells for a discount to Brent and lower API grades of WTI because US refiners don’t want it. They have started a new classification called West Texas Light (WTL) to accommodate this crap. They ship it as diluents for tar sands and other low API heavy oil or for feedstock for plastic and chemical plants, or lighter fluid and Coleman fuel type products. The tight oil fracking bonanza has been a losing play for almost all the players, propped up only by Wall Street and the Fed’s easy money. The US still imports around 7 million barrels per day of middle API grades to make the products that Americans need. The US uses around 20 million barrels a day of crude and condensate. The discount spread between the price of a barrel of WTL oil exported and the price of a barrel of Brent oil imported also hurts the trade deficit.
Energy independence is a con job. Just because the US now exports a few barrels more than it imports occasionally, doesn’t make it energy dependent. It still needs to import overseas crude to make the products it needs. The Venezuelan Orinoco heavy is a great match for WTL as a diluent. But the US wants to control the heavy oil with sweetheart US corporate oilco deals instead of paying market price. The Venezuelans will have none of that so US has sanctioned them and will attempt to starve them of FRNs and medicine and imported food until they collapse.
Some of our trading partners complain that they are not allowed to make their own cars, according to treaty.
But, drafting and triaxial milling are available to everyday people.
Indie workshops are able to build SUV’s and motorcycles — and, presumably, the means of production — starting from metal billet.
I’m assuming that this is illegal on the same level as landrace animals and unregistered wells, just don’t strictly see the need for foreign trade.
h ttps://en.wikipedia.org/wiki/Mercantilism
YouTube
The Money Masters Documentary video 3 & 1/2 hours
This 1996 video is very educational and entertaining.
At the end of the film is information about proposed legislation, Monetary Reform Act.
“…The principal point…is to replace private creation of money by debt, …with government creation of money”
To get copy of video and/or copy of the Act
Call: 719-930-7549
Or send
SASE (self addressed sealable envelope) to
Monetary Reform Act
P.O. Box 25777
Colorado Springs, Co. 80939
http://www.themoneymasters.com
I watched this video a year ago, and again last night. I can’t say I understood everything, but most of it.
I don’t know whether or not this proposed legislation/Constitutional Amendment is the answer to the problem; but I think it deserves our attention and our investigation.
What do you all think about it?
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