robthurman.com: 30 Days Hath December....

April 12, 2006

30 Days Hath December....

This morning, I noticed that several major media outlets were talking about how the trade deficit is shrinking.

So...I read and I read - but I am puzzled by all this "so-called" good news.

I'm asking readers (like you) if this is also what you glean from these numbers, provided by the Commerce Department.

January exports = $114.3 billion
January imports = $182.9 billion
Goods/Services deficit = $68.6 billion

February exports = $113.0 billion
February imports = $178.7 billion
Goods/Services deficit = $65.7 billion.

January/Februray deficit difference = $2.9 billion

Now this is being paraded around like it's good news.

Wouldn't one expect a drop in the monthly trade deficit totals if you use a month-to-month model because February is...well...3 days shorter than January?

Also, if you can rack up a deficit of $68.6 billion dollars in 31 days, shouldn't your deficit for 28 days be less than $65.7 billion for it to be considered "good news?"

I'm not an economist, so I thought I'd ask....

Posted April 12, 2006 04:53 PM

Comments

This has nothing to do with this blog posting!!! not that this isn't a great article, but I couldn't figure out how to give you this message any other way, so please forgive me. I just finished reading your first novel, I think it is outstanding and I hope you are hard at work on the next. Your characters are fantastic. Like I said I'm sorry if you have a particular area for these "fan" droolings, I could not find it.

-- posted by: Nichole on April 15, 2006 05:41 PM

Brother Rob...

I read this report, which by the way, was put out by our favorite World Trade Organization (ick!). They presented data in %s. 2005 had an increase in exports by 7%, while imports increased 5.5%. Since they failed to include economic indicators such as annual salary and economic status of the working class, one can only 'assume' that the significant increase in exports over imports is because of the race-to-the-bottom economics associated with free trade...

It's like, companies make money exporting their shit (which then goes to funding government, etc) but the money never makes it into the hands of those that facilitate the export process (manufacturing plants, farmers, etc) thus limiting the import potential of this country.

What's so frustrating is that this is furhter dividing the 'haves' and the 'have-nots'. I despise trade liberalization! Ugh!

Anyway, thanks for writing about this!

Craig

-- posted by: Craig on April 14, 2006 09:32 AM