Year EXPORTS IMPORTS DIFFERENCE
1970 42,681,000,000 40,356,000,000 +2,325,000,000
1975 107,652,000,000 98,503,000,000 +9,149,000,000
1980 220,626,000,000 244,871,000,000 -24,245,000,000
1985 213,133,000,000 345,276,000,000 -132,143,000,000
1990 394,030,000,000 495,042,000,000 -101,012,000,000
1995 548,742,000,000 743,445,000,000 -158,703,000,000
1996 625,075,000,000 795,289,000,000 -170,214,000,000
1997 679,325,000,000 877,279,000,000 -197,955,000,000
1998 670,641,000,000 918,800,000,000 -248,159,000,000
1999estimates -475,000,000,000
Negative American trade balance since 1975 -$1,259,272,000,000
I think that's: 1quadrillion,259 trillion, 272 billion dollars in the red!
Does anybody look at this sinkhole of American assets ??
----- Original Message -----
From: "Alamaine" <[EMAIL PROTECTED]>
To: <[EMAIL PROTECTED]>
Sent: Thursday, May 25, 2000 11:35 AM
Subject: [CTRL] Behold the Beholdin'
> >>> This is an interesting development ... setting the order of events in
> diminishing the U.S.'s strength economically by making it a net debtor
nation,
> beholdin' to other smaller, weaker (supposedly) nations. Could it be a
sort of
> "Weimarisation" wherein this sort of insufficiency in maintaining a
balance of
> imports and exports allows greater inflation and less sovereignty ?
> A<>E<>R <<<
>
>
> >From www.wsws.org
>
> WSWS : News & Analysis : North America : US Economy
> US trade deficit hits new monthly record
> By Nick Beams
> 25 May 2000
> Back to screen version
>
> The rise in the trade deficit to a record $30.2 billion for the month of
March
> is a further indication of the growing instability of the US financial
system.
> The mounting trade gap, which is expected to hit $432 billion this year if
> present trends continue, and the growing indebtedness of the US economy
point
> to one of the motivations for the interest rate rises initiated by the US
> Federal Reserve over the past year.
>
> Apart from seeking to push down wage demands, financial authorities in the
US
> have lifted interest rates in order to ensure that the inflow of foreign
> capital needed to fund the trade gap continues.
>
> However such a policy has its limits. As Fed chairman Alan Greenspan has
noted
> on several occasions the widening trade and balance of payments deficit,
which
> requires ever larger inflows of foreign capital to finance it, cannot be
> sustained indefinitely. At a certain point the US international debt will
> become so large that the US dollar will start to fall, leading to an
outflow of
> capital, increased inflation and the emergence of recession.
>
> A breakdown of the US trade position for the first three months of this
year
> reveals that its position vis-�-vis its major trading partners has
worsened
> significantly. Overall the trade deficit for the first quarter increased
by
> 59.4 percent over the same period in 1999.
>
> The trade gap with China rose by 22.8 percent over the quarter, by 16.5
percent
> with Japan, 18.5 percent with the Pacific Rim countries and by 91.6
percent
> with Western Europe.
>
> In any other country, the existence of such a widening trade gap would
bring
> about a sharp decline in the value of the currency. But the US enjoys
> considerable advantages due to the fact that the dollar functions as an
> international currency, and the US is regarded as a "safe haven" for
global
> investment funds. Hence, it is able to finance its growing trade gap with
an
> inflow of capital from the rest of the world.
>
> But this is leading to a sharp increase in the net indebtedness of the US
> economy. While official figures will not be released until the end of next
> month, it has been estimated that US net international debt has increased
from
> $1.2 trillion in 1998 to $1.6 trillion at the end of 1999.
>
> Figures on foreign capital inflow over the past decade show the increasing
> dependence of the US on this inflow to finance the trade gap, the
escalation of
> the stock market and capital investment.
>
> In the 10 years from 1983 to 1993, the net annual inflow of foreign
capital
> averaged around $88 billion a year, for a total of around $900 billion.
However
> after 1993 the inflow has accelerated rapidly. After averaging just under
$60
> billion per annum in the period of 1990-93, the foreign capital inflow
rose to
> around $140 billion in 1994 and 1995, increasing to $195 billion in 1996,
and
> escalating to $264 billion in 1997. Since 1998 the annual US demands on
global
> capital are estimated to have increased by about $100 billion to $350
billion.
> In other words, in order to sustain its economy the US now has to suck in
about
> $1 billion per day from the rest of the world.
>
> In lifting interest rates in order to try to sustain this inflow, the
Federal
> Reserve Board is walking something of an economic tightrope. On the one
hand,
> increasing interest rates are needed to make investment in corporate and
> treasury bonds more attractive to international capital. On the other
hand,
> however, a rapid rise in interest rates threatens to collapse the stock
market
> bubble, leading to an outflow of capital which has increasingly found its
way
> on to Wall Street.
>
> A sharp reversal of the capital inflow would see a further increase in US
> interest rates, a fall in stock market values and a decline in the value
of the
> dollar, leading to increased inflation and a possible crisis of confidence
in
> the dollar.
>
> In the meantime, the interest rate rises initiated by the Fed are placing
> increased financial pressures on the other major capitalist countries, in
> particular Europe. Since its launch in January 1999 at a value of $1.18,
the
> euro has fallen to as low as 87 cents.
>
> Countries with major balance of payments deficits such as Australia are
also
> coming under increased pressure. With a net foreign debt of $230 billion
and a
> current account deficit running at more than 5 percent of GDP-a higher
> proportion than the US-Australia is heavily dependent on foreign capital
> inflows. But, as a recent analysis prepared by the ANZ Bank points out,
> competition for funds has sharpened as US demands have increased.
>
> In 1998, the bank points out, Japan, East Asia and Europe had balance of
> payments surpluses of $350 billion, making it relatively easy for
Australia to
> finance its annual balance of payments deficit of $18 billion. But since
then
> these surpluses have fallen by about $100 billion while US capital demands
have
> increased by around the same amount.
>
> The upshot has been a sharp fall in the value of the Australian dollar
against
> the US currency, with the prospect of a further decline in the immediate
> future, and the threat of rising inflation.
>
> Australian Treasurer Peter Costello has declared that the government
should not
> lift interest rates to match the rises in the US, but should instead base
its
> strategy on a decline in US growth. But such a strategy is also fraught
with
> dangers.
>
> A decline in the US growth rate sufficient to reduce its balance of
payments
> deficit and claims on international capital flows could have far-reaching
> consequences for the entire world economy if it were to set off a crisis
of
> confidence in the US dollar and precipitate a slide into recession.
>
> Copyright 1998-2000
> World Socialist Web Site
> All rights reserved
>
> A<>E<>R
> ~~~~~~~~~~~~~~~
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minor
effects spread throughout the spectrum of time and thought. That being said,
CTRL
gives no endorsement to the validity of posts, and always suggests to readers;
be wary of what you read. CTRL gives no credence to Holocaust denial and
nazi's need not apply.
Let us please be civil and as always, Caveat Lector.
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