U.S. Trade Gap Narrows, Brightening Growth Outlook

The trade gap fell more than 22% during the month, to $34.2 billion from $44.1 billion, the Commerce Department said.

Exports notched their sharpest rise since September 2012, hitting their highest level, adjusted for inflation, on record.

Imports fell in part because Americans bought far fewer foreign-made cellphones and other consumer goods.



Original content +Bob DeMarco , All American Investor

Imports of Goods, Balance of Payments View (Graph)

Imports of Goods, Balance of Payments View (Monthly)



Imports are falling like a lead brick. The drop in the last six months is almost five times the size of the drop of the previous recession. The entire previous recession.

Today's Import/Export report indicates that this is likely to continue.

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Bob DeMarco is a citizen journalist and twenty year Wall Street veteran. Bob has written more than 500 articles with more than 11,000 links to his work on the Internet. Content from All American Investor has been syndicated on Reuters, the Wall Street Journal, Fox News, Pluck, Blog Critics, and a growing list of newspaper websites. Bob is actively seeking syndication and writing assignments.

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Imports from China Dropping Fast (Graph)

Imports from China



The above chart represents imports from China in millions, monthly. It is pretty obvious that imports from China are dropping. Today's report on Import/Exports showed that imports are still dropping. As a result, it is likely that imports from China are likely to continue dropping for the foreseeable future.

Why is this chart important? We will be relying on China to buy an enormous amount of Treasury securities in the years ahead. But, will they be able to accommodate our needs? 

Frankly, this is worrisome. If this trend continues for a long period of time it could impact interest rates--dramatically.

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Bob DeMarco is a citizen journalist and twenty year Wall Street veteran. Bob has written more than 500 articles with more than 11,000 links to his work on the Internet. Content from All American Investor has been syndicated on Reuters, the Wall Street Journal, Fox News, Pluck, Blog Critics, and a growing list of newspaper websites. Bob is actively seeking syndication and writing assignments.

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