BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[U.S. House May Use 'a Stick' to Nudge China on Yuan]]>http://www.bloggingstocks.com/2010/09/16/u-s-house-may-use-a-stick-to-nudge-china-on-yuan/http://www.bloggingstocks.com/2010/09/16/u-s-house-may-use-a-stick-to-nudge-china-on-yuan/http://www.bloggingstocks.com/2010/09/16/u-s-house-may-use-a-stick-to-nudge-china-on-yuan/#commentsFiled under: ,

In upcoming talks with China, the United States will try for what seems like the 1,000th time to encourage China to let its currency, the yuan, appreciate quicker, even as a growing list of sponsors add their name to a U.S. House bill, The New York Times (NYT) reported, that would require the Obama administration to impose duties or other trade barriers in lieu of currency action by Beijing.

China keeps the yuan in a tight trading band, arguing that it must keep the yuan valued at a low level to protect embryonic companies and sectors.

The United States argues that the yuan's artificially-low value unnaturally draws in trade revenue via cheap exports that, under a market-value yuan, would flow to other countries.

Continue reading U.S. House May Use 'a Stick' to Nudge China on Yuan

U.S. House May Use 'a Stick' to Nudge China on Yuan originally appeared on BloggingStocks on Thu, 16 Sep 2010 15:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>dollarexportsimportsinthenewstrade deficityuanThu, 16 Sep 2010 15:30:00 EST<![CDATA[U.S. Trade Deficit Surges to a 21-Month High]]>http://www.bloggingstocks.com/2010/08/11/u-s-trade-deficit-at-21-month-high/http://www.bloggingstocks.com/2010/08/11/u-s-trade-deficit-at-21-month-high/http://www.bloggingstocks.com/2010/08/11/u-s-trade-deficit-at-21-month-high/#commentsFiled under: , ,

trade deficitThe news on the import/export front is not good. The Commerce Department reported that our trade deficit widened to $49.90 billion in July, a 21-month high. Economists surveyed by the Wall Street Journal had expected the deficit to come in at $42.7 billion.

The wider deficit was caused by a increased imports and a drop in exports. Exports shrank by 1.3% to $150.45 billion, while imports jumped to 3.1% to $200.35 billion, up from $194.42 billion.

Continue reading U.S. Trade Deficit Surges to a 21-Month High

U.S. Trade Deficit Surges to a 21-Month High originally appeared on BloggingStocks on Wed, 11 Aug 2010 10:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>ChinaexportsimportsinthenewsMexicotrade deficittrade gapWed, 11 Aug 2010 10:30:00 EST<![CDATA[Trade Gap Unexpectedly Grows During May]]>http://www.bloggingstocks.com/2010/07/13/trade-gap-grows-during-may/http://www.bloggingstocks.com/2010/07/13/trade-gap-grows-during-may/http://www.bloggingstocks.com/2010/07/13/trade-gap-grows-during-may/#commentsFiled under:

Reaction to stronger-than-expected earnings from Alcoa (AA) may be put to the test by economic data. Tuesday's data includes the U.S. trade deficit, which grew unexpectedly during May. Driven by a large jump in imports from China, the trade gap widened 4.8% to $42.3 billion, the largest gap since November 2008. The Street expected to see the gap narrow to $39.0 billion during May.

Digging into the numbers a bit, U.S. imports increased 2.9% to the highest level since October 2008; a 12.1% increase in shipments from China helped push this number higher. U.S. exports increased 2.4% in May, which was the best gain since September 2008. This increase was driven by large gains for industrial supplies and materials, along with capital goods and smaller increases for cars and consumer goods.

Continue reading Trade Gap Unexpectedly Grows During May

Trade Gap Unexpectedly Grows During May originally appeared on BloggingStocks on Tue, 13 Jul 2010 11:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AAeconomic datafinancial crisisinthenewstrade deficittrade gapTue, 13 Jul 2010 11:00:00 EST<![CDATA[U.S. Trade Gap Widens in November]]>http://www.bloggingstocks.com/2010/01/12/u-s-trade-gap-widens-in-november/http://www.bloggingstocks.com/2010/01/12/u-s-trade-gap-widens-in-november/http://www.bloggingstocks.com/2010/01/12/u-s-trade-gap-widens-in-november/#commentsFiled under: ,

Do you want the good news (if there is any) or the bad news? Following Alcoa's (AA) earnings disappointment and the warnings from Chevron (CVX) and Electronic Arts (ERTS), the Commerce Department reported that the trade deficit with China widened more than expected during November.

The deficit grew 9.7% in November to $36.4 billion, outpacing the consensus forecast for a deficit of $34.8 billion. Exports increased for the seventh straight month; unfortunately, imports increased at a faster pace during November.

Continue reading U.S. Trade Gap Widens in November

U.S. Trade Gap Widens in November originally appeared on BloggingStocks on Tue, 12 Jan 2010 10:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Commerce DepartmentCommerceDepartmentinthenewstrade deficitTradeDeficitU.S. trade deficitU.s.TradeDeficitTue, 12 Jan 2010 10:00:00 EST<![CDATA[Trade gap narrows -- a nice surprise]]>http://www.bloggingstocks.com/2009/12/10/trade-gap-narrows-a-nice-surprise/http://www.bloggingstocks.com/2009/12/10/trade-gap-narrows-a-nice-surprise/http://www.bloggingstocks.com/2009/12/10/trade-gap-narrows-a-nice-surprise/#commentsFiled under: ,

According to the Commerce Department, the U.S. trade deficit narrowed by 7.6% in October to $32.9 billion as exports increased faster than imports. Analysts had expected the trade gap to widen to show a deficit of $37 billion. The trade deficit for the year now stands at $304 billion, which is down from $610.8 billion this time last year.

The biggest reason for the lower deficit was a decrease in the importing of crude oil. That said, the trade deficit with China continued to increase, expanding to $22.7 billion in October, compared to $22.1 billion in September. The current deficit with China is at its highest level since last November. The year-long deficit with China is now $188.5 billion.

Continue reading Trade gap narrows -- a nice surprise

Trade gap narrows -- a nice surprise originally appeared on BloggingStocks on Thu, 10 Dec 2009 10:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>crude oileconomic recoveryinthenewstrade deficitThu, 10 Dec 2009 10:20:00 EST<![CDATA[Will Americans be working for Chinese wages?]]>http://www.bloggingstocks.com/2009/11/17/will-americans-be-working-for-chinese-wages/http://www.bloggingstocks.com/2009/11/17/will-americans-be-working-for-chinese-wages/http://www.bloggingstocks.com/2009/11/17/will-americans-be-working-for-chinese-wages/#commentsFiled under: , , , , , , , ,

The only thing that has been devalued faster than our precious dollar is the perpetual slide in government credibility. Over the years we have heard countless times about the importance of a strong dollar from our leaders.

"Our administration believes in and will do everything in its power to support a strong dollar" or something like this has been spewed out by Republicans and Democrats alike, yet there is little evidence that the policies put in place over the past century have done anything of the sort. Perhaps there was one person that took the heat and did the right thing -- Paul Volcker, during the Carter administration, who had to deal with dizzying inflation.

Continue reading Will Americans be working for Chinese wages?

Will Americans be working for Chinese wages? originally appeared on BloggingStocks on Tue, 17 Nov 2009 15:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Ben BernankeChinaDollar depreciationdollar valueFDXfeaturedFederal Reservefedexinflationnational debtpresidential politicsSheldon LiberSheldonLibertrade deficitwagesTue, 17 Nov 2009 15:20:00 EST<![CDATA[Consumer sentiment down, but glimmer of hope in trade data]]>http://www.bloggingstocks.com/2009/11/13/consumer-sentiment-down-but-glimmer-of-hope-in-trade-data/http://www.bloggingstocks.com/2009/11/13/consumer-sentiment-down-but-glimmer-of-hope-in-trade-data/http://www.bloggingstocks.com/2009/11/13/consumer-sentiment-down-but-glimmer-of-hope-in-trade-data/#commentsFiled under: ,

There's always good news, if you're willing to look hard for it. So, even though consumer sentiment dropped as unemployment rose, you can find the seeds of economic recovery in some of the U.S. import and export data reported recently.

Consumer sentiment fell early this month, largely because of the grim outlook for the job market. Consumers don't see a recovery coming anytime soon, with economists saying that unemployment has yet to peak despite having hit 10.2% already. Hopes edged higher in September when imports were seen to be on the rise, but sentiment starts and ends with jobs.

Continue reading Consumer sentiment down, but glimmer of hope in trade data

Consumer sentiment down, but glimmer of hope in trade data originally appeared on BloggingStocks on Fri, 13 Nov 2009 17:20:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>consumer sentimentConsumerSentimentrecessionReuters University of Michigan Surveys of ConsumersReutersUniversityOfMichiganSurveysOfConsumersTrade DeficitTradeDeficitunemploymentunemployment rateUnemploymentRateFri, 13 Nov 2009 17:20:00 EST<![CDATA[Surprise! Trade deficit drops 3.5%]]>http://www.bloggingstocks.com/2009/10/09/surprise-trade-deficit-drops-3-5/http://www.bloggingstocks.com/2009/10/09/surprise-trade-deficit-drops-3-5/http://www.bloggingstocks.com/2009/10/09/surprise-trade-deficit-drops-3-5/#commentsFiled under: ,

In August, the U.S. trade deficit showed an unexpected drop of 3.5%. This shrinks the deficit to a mere $30.7 billion - rather than the $33 billion economists expected. Oil prices surged, but the amount of shipments fell precipitously. The increase in exports suggests that the global economy is working its way out o the doghouse.

Exports of goods and services pushed 0.2% higher in August to $28.2 billion. This was the fourth consecutive month of increases. American farm products, cars and parts, industrial engines and telecommunications equipment sales all contributed to the small upward move.


Continue reading Surprise! Trade deficit drops 3.5%

Surprise! Trade deficit drops 3.5% originally appeared on BloggingStocks on Fri, 09 Oct 2009 12:20:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>balance of tradeBalanceOfTradeoilpetroleumtrade balancetrade deficitTradeBalanceTradeDeficitFri, 09 Oct 2009 12:20:00 EST<![CDATA[U.S. trade deficit widens in April for the second straight month]]>http://www.bloggingstocks.com/2009/06/10/u-s-trade-deficit-widens-in-april-for-the-second-straight-month/http://www.bloggingstocks.com/2009/06/10/u-s-trade-deficit-widens-in-april-for-the-second-straight-month/http://www.bloggingstocks.com/2009/06/10/u-s-trade-deficit-widens-in-april-for-the-second-straight-month/#commentsFiled under: ,

How do we know that world trade is loosening up? One indication is the U.S. trade deficit. Unfortunately the U.S. has been running a growing trade deficit for the past two months. You may be asking, what causes our trade deficit? The U.S. trade deficit is caused by importing more goods than we export. In April the trade gap widened by 2.4% from March to $29.2 billion. This follows a 10-year low in February.

The trade gap narrowed by 53% from a year ago when world trade collapsed from the global recession. The slight gains in the past two months indicate that some improvement is occurring in world commerce.

Continue reading U.S. trade deficit widens in April for the second straight month

U.S. trade deficit widens in April for the second straight month originally appeared on BloggingStocks on Wed, 10 Jun 2009 11:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>ChinaEUinthenewsMexicooil pricestrade deficittrade gapWed, 10 Jun 2009 11:40:00 EST<![CDATA[U.S. trade deficit falls to six-year low in December on declining imports]]>http://www.bloggingstocks.com/2009/02/11/u-s-trade-deficit-falls-to-six-year-low-in-december-on-declinin/http://www.bloggingstocks.com/2009/02/11/u-s-trade-deficit-falls-to-six-year-low-in-december-on-declinin/http://www.bloggingstocks.com/2009/02/11/u-s-trade-deficit-falls-to-six-year-low-in-december-on-declinin/#commentsFiled under: , , ,

container shipMany economists agree the U.S.'s pronounced recession, and the global recession, to some degree, were triggered by a series of imbalances. One of those imbalances is correcting now.

The U.S. trade deficit declined again in December 2008, by 4%, to $39.9 billion -- the lowest level since February 2003 -- on a substantial decline in imports, the U.S. Commerce Department announced Wednesday.

Further, for all of 2008, the trade deficit narrowed to $677.1 billion from $700.2 billion in 2007. In 2008, exports increased 12% to $1.84 trillion, while imports climbed 7.4% to $2.52 trillion.

Continue reading U.S. trade deficit falls to six-year low in December on declining imports

U.S. trade deficit falls to six-year low in December on declining imports originally appeared on BloggingStocks on Wed, 11 Feb 2009 10:50:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>emerging marketsexportsimportsinthenewstradetrade deficitU.S. Commerce DepartmentU.S. economyWed, 11 Feb 2009 10:50:00 EST<![CDATA[This U.S. administration may have a strong dollar policy . . . and actually mean it]]>http://www.bloggingstocks.com/2009/02/09/this-u-s-administration-may-have-a-strong-dollar-policy-and-a/http://www.bloggingstocks.com/2009/02/09/this-u-s-administration-may-have-a-strong-dollar-policy-and-a/http://www.bloggingstocks.com/2009/02/09/this-u-s-administration-may-have-a-strong-dollar-policy-and-a/#commentsFiled under: , ,

The previous U.S. presidential administration preached a great deal about a 'strong dollar policy.'

Unfortunately, almost no actions practiced by the administration supported that goal.

Concerning the federal budget, a decade of deficits has really hurt the dollar's value. A $1.3 trillion tax cut in 2001 ended the balance budget era of the late 1990s, and subsequent increases in defense spending for the Iraq and Afghanistan Wars -- combined with a lack of a tax increase to pay for that additional spending -- soon led to +$200 billion budget deficits. After swelling to $300 billion, the bank bailout and related legislation would push the deficit over $500 billion, according to the Congressional Budget Office, and it's projected to top $1 trillion this year and in fiscal 2010.

Continue reading This U.S. administration may have a strong dollar policy . . . and actually mean it

This U.S. administration may have a strong dollar policy . . . and actually mean it originally appeared on BloggingStocks on Mon, 09 Feb 2009 15:18:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>British poundbudget deficitcorporate tax ratedollareuroObama administrationtrade deficitMon, 09 Feb 2009 15:18:00 EST<![CDATA[China seen ignoring, for now, Geithner yuan remark as 'confirmation posturing' ]]>http://www.bloggingstocks.com/2009/01/23/china-seen-ignoring-for-now-geithner-yuan-remark-as-confirmat/http://www.bloggingstocks.com/2009/01/23/china-seen-ignoring-for-now-geithner-yuan-remark-as-confirmat/http://www.bloggingstocks.com/2009/01/23/china-seen-ignoring-for-now-geithner-yuan-remark-as-confirmat/#commentsFiled under: , ,

Oh, relax, it's only January.

That was one China expert's evaluation of the impact of U.S. Treasury Secretary-designate Timothy Geithner's comment that he believes China is "manipulating" its currency.

China's currency, the yuan, which China allows to trade in a tight band, and not float freely in the currency market, has long been been viewed by Congressional lawmakers, business executives, and analysts as a tactic by China to artificially depress the value of its goods, in order to increase exports sales. Critics argue China is creating an unnatural competitive advantage for its companies. The yuan closed Thursday at 6.8380 to the dollar.

China counters that it must keep its currency fixed to protect its young, immature industries and developing economy.

Taking it with a grain of salt

Further, while the Bush administration did not push the currency issue much with China, and Geithner's comments suggest otherwise, economist David H. Wang, a China expert, said China is likely to disregard Geithner's comments.

"China's leaders have developed an increasing sophistication regarding the American political system," Wang said. There is a phrase you hear a lot now in Beijing that translates roughly to 'Don't pay attention to any comments from America from November thru January.' And, for the most part, that's a good rule to follow."

Continue reading China seen ignoring, for now, Geithner yuan remark as 'confirmation posturing'

China seen ignoring, for now, Geithner yuan remark as 'confirmation posturing' originally appeared on BloggingStocks on Fri, 23 Jan 2009 14:01:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>budget deficitdollarexportsGeithnerinthenewstradetrade deficityuanFri, 23 Jan 2009 14:01:00 EST<![CDATA[Martin Wolf: U.S. fiscal stimulus is a necessary task, but not the only one]]>http://www.bloggingstocks.com/2009/01/14/martin-wolf-u-s-fiscal-stimulus-is-a-necessary-task-but-not-t/http://www.bloggingstocks.com/2009/01/14/martin-wolf-u-s-fiscal-stimulus-is-a-necessary-task-but-not-t/http://www.bloggingstocks.com/2009/01/14/martin-wolf-u-s-fiscal-stimulus-is-a-necessary-task-but-not-t/#commentsFiled under: , ,

Can the U.S. government run $1 trillion budget deficits for two, three years? Indeed it can, Financial Times columnist Martin Wolf argues, and the deficits can even be higher, for a while. After that, there's more work ahead.

The specter of $1 trillion budget deficits may be vociferously opposed by Republicans and other economic conservatives, but Wolf, in so many words, says what other choice does the United States have? What would be the alternative? Simultaneously raising taxes now to lower the deficit? Hardly prudent. Doing nothing? Another dreadful idea. So, it's prime the pump, or sit there at the well and await nothing.

Up ahead: two bigger tasks

What's more, Wolf sees two additional tasks (structural changes) that are just as important to the goal of U.S. economic recovery -- but that may be even harder to implement: removing toxic assets from the banking system and reducing the U.S.'s structural current account deficit (the trade deficit).

The first is the forced write-off of bad assets, fiscal recapitalization of the banks, or debt-for-equity tactic, and it should be done comprehensively and quickly. Slow, gradual bad-debt reduction is not the correct policy, Wolf argues, as it would delay the economic recovery.

Continue reading Martin Wolf: U.S. fiscal stimulus is a necessary task, but not the only one

Martin Wolf: U.S. fiscal stimulus is a necessary task, but not the only one originally appeared on BloggingStocks on Wed, 14 Jan 2009 17:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bank sectorFedfiscal policyfiscal stimulus packagegdpimportsMartin Wolfmonetary policyquantitative easingtoxic assetstradetrade deficitU.S. economyWed, 14 Jan 2009 17:00:00 EST<![CDATA[November U.S. trade deficit falls to $40.4 billion on declining imports]]>http://www.bloggingstocks.com/2009/01/13/november-u-s-trade-deficit-falls-to-40-4-billion-on-declining/http://www.bloggingstocks.com/2009/01/13/november-u-s-trade-deficit-falls-to-40-4-billion-on-declining/http://www.bloggingstocks.com/2009/01/13/november-u-s-trade-deficit-falls-to-40-4-billion-on-declining/#commentsFiled under: ,

There have been almost no positives in the U.S. recession that has resulted in millions of job losses, and also hurt corporate revenue and earnings, most economists agree.

But at least one metric has moved in the correct direction: the U.S. trade deficit, which declined 29% in November 2008 to $40.4 billion on a record decline in imports, the U.S. Commerce Department announced Tuesday.

Economists surveyed by Bloomberg News had expected the November 2008 trade deficit to total $51.5 billion.

Imports declined a record 12% to $183.2 billion -- the lowest level in more than two years -- pushed lower by a large drop in imported oil prices.

Exports dropped 5.8% to $142.8 billion, on declining demand for industrial supplies and capital goods. The October 2008 trade deficit was revised lower to $56.7 billion from the previously released $57.2 billion.

Continue reading November U.S. trade deficit falls to $40.4 billion on declining imports

November U.S. trade deficit falls to $40.4 billion on declining imports originally appeared on BloggingStocks on Tue, 13 Jan 2009 10:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>exportsgdpimportsinthenewstradetrade deficitU.S. Commerce DepartmentU.S. economyTue, 13 Jan 2009 10:40:00 EST<![CDATA[Should President-elect Obama propose a $10 per barrel oil tax? ]]>http://www.bloggingstocks.com/2008/12/24/should-president-elect-obama-propose-a-10-per-barrel-oil-tax/http://www.bloggingstocks.com/2008/12/24/should-president-elect-obama-propose-a-10-per-barrel-oil-tax/http://www.bloggingstocks.com/2008/12/24/should-president-elect-obama-propose-a-10-per-barrel-oil-tax/#commentsFiled under: , , ,

During the past four years, as gasoline first soared above $3, then $4, the United States transferred more than $2 trillion is wealth to oil producing nations, to which OPEC says, "Thank you very much."

However, in recent months, the price of oil has collapsed with the onset of the U.S. and global recessions, and oil now appears destined to test $30 per barrel - - and probably lower levels - - in the year ahead. Oil traded Wednesday down $1.53 to $37.43 per barrel, with regular unleaded gasoline averaging about $1.55-$1.75 nationwide. Incredibly, the stunning turn of events in the oil market means that energy from crude is now 'comfortably priced.'

Still, with three oil shocks (1973-74, 1979-80, 2007-08) having contributed to or directly causing three U.S. recessions, oil's drift back toward 'comfortable' levels re-opens the door for a policy debate: namely, should the U.S. let its economy remain vulnerable to prices swings in this volatile commodity or should it consider a tax to fund alternative energy sources for transportation.

Is a $10 oil tax up ahead?

Economist Peter Dawson said it seems almost unfathomable that the American people and Congress would be willing to ship $100 per barrel (or more) in oil revenue to foreign governments, and not to its own government, but that is precisely the case.

Continue reading Should President-elect Obama propose a $10 per barrel oil tax?

Should President-elect Obama propose a $10 per barrel oil tax? originally appeared on BloggingStocks on Wed, 24 Dec 2008 15:32:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>alternative energy sourcesCongressDemocratsgasoline pricesinthenewsObamaoil pricesoil taxOPECRepublicanstaxestrade deficitWed, 24 Dec 2008 15:32:00 EST<![CDATA[A global imbalance not likely to be repeated: dependence on U.S. consumption]]>http://www.bloggingstocks.com/2008/11/26/a-global-imbalance-not-likely-to-be-repeated-dependence-on-u-s/http://www.bloggingstocks.com/2008/11/26/a-global-imbalance-not-likely-to-be-repeated-dependence-on-u-s/http://www.bloggingstocks.com/2008/11/26/a-global-imbalance-not-likely-to-be-repeated-dependence-on-u-s/#commentsFiled under: , , , , , , , ,

Few economists deny that the global economic order that dawns following the financial crisis will be different from the pre-crisis order.

And a key difference is likely to be consumption patterns -- namely the development and expansion of middle classes in younger economies as a source of demand.

The export economy's downside

Emerging market economies have learned/are learning an all-too-painful lesson regarding the vulnerabilities -- or the downside -- of an export-based economy: if for some reason that foreign demand wanes or dries up, your economy has a problem. A big problem.

Continue reading A global imbalance not likely to be repeated: dependence on U.S. consumption

A global imbalance not likely to be repeated: dependence on U.S. consumption originally appeared on BloggingStocks on Wed, 26 Nov 2008 15:36:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>consumer spendingemerging marketsexportsgdpglobalizationimportssavings ratetradetrade deficitU.S. economyWed, 26 Nov 2008 15:36:00 EST<![CDATA[Is now a good time for the U.S. to kick its oil habit?]]>http://www.bloggingstocks.com/2008/11/17/is-now-a-good-time-for-the-u-s-to-kick-its-oil-habit/http://www.bloggingstocks.com/2008/11/17/is-now-a-good-time-for-the-u-s-to-kick-its-oil-habit/http://www.bloggingstocks.com/2008/11/17/is-now-a-good-time-for-the-u-s-to-kick-its-oil-habit/#commentsFiled under: , ,

With oil prices cut in half and gasoline near (or below) $2 per gallon, is now a good time for the U.S. to end its century-long addiction to oil?

The topic was raised by none other than the 'liberal bastion' of The Wall Street Journal Monday (subscription required0 with energy analysts and policy makers weighing in.

BloggingStocks Monday asked Energy Trader Jim Dietz to evaluate some of the major recommendations discussed.
  • Four-day work week: "It's possible, but the best plan would be voluntary, allowing companies to opt in/out and adopt plans that meet their production needs," Dietz said.
  • Mandated higher MPG for vehicles: "This is almost certain to be proposed by President-elect Obama, and will likely pass the Congress. It will reduce gasoline and diesel consumption."
  • Mandated flex-fuel cars: "Another measure likely to become federal law and it would take pressure off oil consumption."
  • Tax credit for fuel-efficient vehicles: "Another oil saver, and it stands a better than 50% chance of being passed by the next Congress."
  • Federal funds for next-gen vehicle: "This will likely be included in any rescue package for General Motors, Ford, and Chrysler. A next-generation vehicle would be a game-changer, energy wise, but it's years away."

Continue reading Is now a good time for the U.S. to kick its oil habit?

Is now a good time for the U.S. to kick its oil habit? originally appeared on BloggingStocks on Mon, 17 Nov 2008 13:28:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>alternative energy sourcesCAFECongressDemocratsgas taxgasoline pricesGasTaxhybridsinthenewsObamaoil pricesRepublicanssolar powertradetrade deficitTradeDeficitwind powerMon, 17 Nov 2008 13:28:00 EST<![CDATA[Trade deficit declines in September on plunging oil prices]]>http://www.bloggingstocks.com/2008/11/13/trade-deficit-declines-in-september-on-plunging-oil-prices/http://www.bloggingstocks.com/2008/11/13/trade-deficit-declines-in-september-on-plunging-oil-prices/http://www.bloggingstocks.com/2008/11/13/trade-deficit-declines-in-september-on-plunging-oil-prices/#commentsFiled under: , ,

There have been few bright spots as the United States attempts to battle back from almost a decade of policy errors, but one positive trend continued Thursday: the trade deficit continues to decline.

The U.S trade deficit narrowed in September to $56.5 billion -- its smallest total in almost a year -- as the plunge in oil prices decreased the nation's bill for imported oil, the U.S. Commerce Department announced Thursday. Economists surveyed by Bloomberg News had expected the September trade deficit to total $57.0 billion. The trade deficit totaled $59.1 billion in August.

Imports fell a record $12.5 billion to $211.9 billion in September, while exports declined a record $9.9 billion to $155.4 billion. Further, during the past year, the real trade deficit has declined 19.7%, with real imports declining 6% and real exports dipping 2.3%.

Economist Peter Dawson said the major factor in the continued reduction in the U.S. trade gap is the plunge in oil prices, but U.S. consumer behavior also is playing a role.

Continue reading Trade deficit declines in September on plunging oil prices

Trade deficit declines in September on plunging oil prices originally appeared on BloggingStocks on Thu, 13 Nov 2008 11:50:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>exportsgdpimportsinthenewsoil pricestradetrade deficitU.S. Commerce DepartmentU.S. economyThu, 13 Nov 2008 11:50:00 EST<![CDATA[It was a global economy of imbalances]]>http://www.bloggingstocks.com/2008/11/11/it-was-a-global-economy-of-imbalances/http://www.bloggingstocks.com/2008/11/11/it-was-a-global-economy-of-imbalances/http://www.bloggingstocks.com/2008/11/11/it-was-a-global-economy-of-imbalances/#commentsFiled under: , ,

Time provides the advantage of not only additional events, but also the ability to the compare these events to conditions and issues in previous eras -- an argument against 'instant-analysis' and a major reason my Ph.D. advisor said, "Don't study any public official's decisions until he or she has been dead for 20 years."

Hence, time is naturally providing more evidence and perspective on the recently-ended period of global economic growth, and increasingly the evidence is showing that it was a global economy of unsustainable imbalances -- balances that policy makers mistakenly ignored.

2001-2007: a policy void

First and probably foremost there was the oil price imbalance. Whether they were driven up by speculators, by institutional investors seeking a return on equity, global energy demand, and/or by other factors, economists had warned for years that the U.S. and global economies could not continue to grow at adequate rates with oil above $80 per barrel. In fact, every previous oil shock in the modern era was followed by a recession in the United States. Still, little was done from a policy standpoint to stem oil's price rise.

Similarly, the U.S.'s then-increasing trade deficit, a good part of which had been fed by purchases of imported oil, and the notion that U.S. consumers could serve perpetually as the growth engine of the export-oriented developing world, was unsustainable, given stagnant U.S. incomes, and its nadir savings rate. Yet little was done to address this imbalance.

Continue reading It was a global economy of imbalances

It was a global economy of imbalances originally appeared on BloggingStocks on Tue, 11 Nov 2008 17:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>BrazilChinaconsumer spendingemerging marketsEUEuropegdpIndiaJapanjob creationjobsmedian incomesoil pricesRussiatrade deficitU.S. economyTue, 11 Nov 2008 17:15:00 EST<![CDATA[Currency traders: Obama wins, buy the dollar; McCain wins, short the dollar ]]>http://www.bloggingstocks.com/2008/10/31/currency-traders-obama-wins-buy-the-dollar-mccain-wins-short/http://www.bloggingstocks.com/2008/10/31/currency-traders-obama-wins-buy-the-dollar-mccain-wins-short/http://www.bloggingstocks.com/2008/10/31/currency-traders-obama-wins-buy-the-dollar-mccain-wins-short/#commentsFiled under: , , ,

What's the post-2008 U.S. Presidential Election dollar outlook and the dollar strategy?

Well, more than likely, the dollar's fate will be largely determined by macroeconomic factors, as well as by fiscal and monetary policy, along with the overall risk appetite/risk aversion climate that hinges on the status of the global financial crisis.

As any economist or currency trader will tell you, that's a full plate of variables, which only underscores the complexity (and difficulty) in determining the direction of currencies.

Nov. 4 election will help determine dollar's fate

Still, fiscal policy plays an important role, and with the aforementioned in mind, look for the following dollar pattern depending on the Tuesday, November 4 Election Day outcome: If U.S. Sen. Barack Obama, D-Illinois, wins, the dollar is likely to strengthen, long-term. If U.S. Sen. John McCain, R-Arizona, wins, the dollar is likely to weaken, long-term.

Currency Trader Eric Simpkins outlined the Obama scenario. Although U.S. budget deficits will initially be high as an Obama presidency begins, an Obama win implies a Democratic Party majority in the U.S. Congress, which will make it easier for Obama to raise taxes on upper income groups, basically those Americans earning more than $250,000 per year.

"Obama's tax increase will cut the U.S. budget deficit and get the revenue and spending lines heading in the right direction, together, which will cause the dollar to rise," Simpkins said. "The U.S. recession will mitigate this somewhat, but that economic negative will be offset by the fact that Europe and other regions will be in recession, too, and will likely recover later, putting pressure on those currencies."

Continue reading Currency traders: Obama wins, buy the dollar; McCain wins, short the dollar

Currency traders: Obama wins, buy the dollar; McCain wins, short the dollar originally appeared on BloggingStocks on Fri, 31 Oct 2008 12:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>2008 electionBarack Obamabudget deficitDemocratsdollareurofeaturedgdpJohn McCainMcCainObamaRepublicanstrade deficitU.S. economyFri, 31 Oct 2008 12:30:00 EST