Record 2010 trade deficit with China

Posted by scapozzola on 02/11/2011

The 2010 annual trade figures for the U.S. were released today.  They show a $497 billion trade deficit in goods and services, including a new record $273 billion goods deficit with China.
 
Said Alliance for American Manufacturing (AAM) Executive Director Scott Paul:
 

"A record trade deficit with China does not put us on a path to win the future.  It will be hard to get our unemployment rate down if our trade deficit keeps going up.  And while I am all in favor of doubling exports, it is a meaningless benchmark unless we also bring down our trade deficit.  Instead, our global trade deficit is growing at an alarming and unsustainable rate.
 
"China now accounts for 75% of our overall non-petroleum goods deficit, yet I have seen little attention paid to it from this Administration, and even less from the new majority in the House of Representatives. 
 
"We commend the authors and cosponsors of bipartisan legislation to deter China from manipulating its currency, and we hope the House and Senate will swiftly pass it, as one step towards a healthier trade policy.
 
"The primary obstacle to achieving substantial economic growth in America is the size of our trade deficit.  I only wish that our elected officials felt as strongly about our trade deficit as they do about the budget deficit."

2 comments

China’s Innovative Beggar-thy-neighbor Strategy!

Insanity: doing the same thing over and over again and expecting different results. – Albert Einstein

\As long as the United States continues to allow China to manipulate the U.S. Dollar and therefore manipulate our trade with ALL our trading partners:
- our balance of trade with ALL our trading partners will be worse than it would otherwise be.
- free trade agreements will work to our disadvantage and we should halt entering into new ones.

China’s beggar-thy-neighbor strategy is not a competitive devaluation of its currency, which would only cheapen its exports and make exports into China more expensive, but an over-valuation of the currencies of one or more of its trading partners. This negatively affects all the trade of the pegged trading partner(s), not just trade with China. U.S. Dollar over-valuation was 8 times as damaging to the U.S. recovery as what the media refers to as “China keeping it currency undervalued”.

A link to my submission for the record for the September 15, 2010 Hearing on China’s Exchange Rate Policy, follows:

http://waysandmeans.house.gov/hearings/Testimony.aspx?TID=9666

An Inflation-Neutral Balanced Trade System (BTS), inspired by Warren Buffett’s 2003 Import Certificate Plan is introduced at the top of page 4 of the Pdf.

I was at the Atlanta airport

I was at the Atlanta airport this week. The CNN show on the monitors had a "feature" on how blues music tourism was the future since all the factories were closing. After this feature, there was a commercial sponsored by the Chinese government. Someone from CNN is helping China "look good". AIM must find a way to call workers to strike until the dollar falls. It is the only way.

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