US export slow with such a low $! Come on, I can’t believe …

rge always no.1, NO DISCUSSION: another discovery by rge, the Cannibal, the eddy merckx of economic blogging. So, drawing on rge’s Setser, Naked Capitalism take the chance for a striptease of US export and trade balance: A BIG SURPRISE under the pants !!! What a surprise … US economy much  less … (ehm)  masculine than it was supposed. Delusion in the gay and nonlesbian women audience.

Naked Capitalism

Saturday, May 10, 2008

Setser: Real Export Growth Stalls

What would we do without Brad Setser to give us a hard, analytical look at trade and international funds flows? Setser tells us that the headline news on the trade deficit, namely, that it shrank in March, is misleading. When you dig deeper, and in particular pull out petroleum-related flows, it reveals that real export growth is stalling, which is not good at all, given the supposedly weak dollar.

You’d never detect that worrisome pattern from the mainstream press. It treated the trade release as entirely good news, as the WSJo illustrates:

    U.S. trade deficit narrowed more than expected in March as imports of cars and crude oil dropped amid record-high oil prices and a weak economy.

    The March deficit was smaller than Wall Street expectations. Economists surveyed by Dow Jones Newswires had estimated a $61.50 billion shortfall.

    The decrease in the trade gap followed two straight months of widening deficits, and suggests that trade contributed more to first-quarter gross domestic product than initially estimated.

rge

And, LADIES AND GENTLEMEN: here is Setser:

Be careful — real export growth looks to have slowed

 Brad Setser | May 9, 2008

Unless your family is in the wheat or beans business (wheat and soybeans exports have more than doubled when q1 08 is compared to q1 07; total food and feed exports are up 50% y/y), there actually wasn’t a lot to like in this month’s trade release

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