Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Stitch who wrote (3758)	5/20/1998 8:20:00 PM
From: MikeM54321	Read Replies (1) \| Respond to of 9980

Off Topic: Not taking any sides on this one, but I really don't think anyone truly meant to insult anyone else. Message boards are a poor way to convey the true gist of a comment. Anyone who posts on the Asia Forum, certainly, isn't the type to go around insulting others for kicks. On Topic: Anyway I found some significant information concerning trade with Asia that, I know, will soon be a big topic in the mainstream press. It concerns the RAPIDLY growing trade deficit we have with Asia. I believe if this was a Presidential election year, this would be the number one topic. It's pretty obvious that the increase is so great, that I'm sure it will have unexpected results. Right now a few say, "Oh it's good for the US because it dampens our inflation." I doubt this argument will hold as the flood builds (IMHO). Here's the article (from Street.com): >>The U.S. trade deficit poses a major risk for the U.S. economy as it is one of the key imbalances. It is likely to be an increasingly significant drag on the U.S. economy. Net exports in the first quarter shaved $40 billion, or nearly half of the growth of the U.S. economy. Even though this was a record, the government may be understating the case. To arrive at this figure, the Commerce Department used January and February trade data to assume the March figure, which had not yet been calculated. The trade data shows that imports from East Asia have risen about 6.5%. But to get a better appreciate of the import penetration that is occurring, add to that the roughly 7% decline in the price of East Asian goods. There are some independent data available warning that a significant deterioration of the U.S. trade balance may have occurred as the first quarter wound down. Two large seaports on the West Coast report a dramatic surge in imports in March and a further decline in exports. The Port of Long Beach is the nation's busiest harbor. Imports of 20-foot containers (filled mostly with consumer goods) rose 17.3% year-on-year in January and 4.2% in February. In March they rose 34.0%. Data from Los Angeles, the second-busiest port, was similar. Imports rose 1.3% in January, 8.8% in February and nearly 40% in March. The export side of the ledger was also revealing. Long Beach exports fell 8.3% year on year in January, 11.7% in February and 16.9% in March. Exports from the Los Angeles port fell 15.7% in January, 6.7% in February and 8.2% in March. Industry watchers report two factors that may be skewing the data. First, the growing U.S. trade deficit with Asia is creating an excess of empty containers at these West Coast ports and a shortage of containers in Asia. Perversely, this shortage of containers is prompting some East Asian exporters to expedite their shipments. Reports suggest some Christmas goods have already been shipped. So while growing trade deficit usually occurs when the U.S. is expanding faster than its trade partners, it points to a potential shift in the composition of growth.<< MikeM(From Florida)