U.S. Trade Deficit Hits All-Time High
By THE ASSOCIATED PRESS
Published: December 14, 2005
For October, imports of goods and services rose by 2.7 percent to an all-time high of $176.4 billion, led by the surge in oil shipments. U.S. exports also rose by a slower 1.7 percent to $107.5 billion.
Critics blame the soaring trade deficits for a loss of 3 million manufacturing jobs since mid-2000 and they argue that Bush's push to strike free trade agreements eliminating all trade barriers between the United States and other nations has opened American workers to unfair competition from low-wage countries.
The United States set deficit records with most of its major trading partners including a $12.1 billion imbalance with the 25-nation European Union, a $8.1 billion imbalance with Canada, the country's largest trading partner, and a record $4.8 billion deficit with Mexico.
Economists of all stripes continually strip Oil prices from the matrix to find a Core Inflation. They also need to strip Oil Imports from the Trade figures to get Core Trade Deficit. The American Economy is losing Production to practically Everyone. Why? The bottom line is that the American Economy has become too specialized.
American Corporate philosophy has driven Business, Financial, and Economic Thought since the Reagan years. This Philosophy demands huge Profit ratios, with Plant closings and Production line phaseouts if the Turnover profits do not match Business format desires. A Turnover Profit of less than 10% deserves nothing but contempt, as defined by Corporate Executives who are Bill Gates' Wannabees. Tens of Thousands can be Laid-Off, but nothing can interfere with their own structured Payment package--overpriced to begin with.
Tongue in Cheek, this Author would say current American Business philosophy provides a rational justification for State-owned Enterprises. lgl