Quantitative Easing and October Trade Results

According to statistics released yesterday by the Commerce Department, U.S. net exports improved slightly in October, though the three month trend is still downward. The best news is that net U.S. goods exports to China increased by $605 million for the year ending in October to a negative $320,419 million from a negative $321,024 million for the year ending in September. A careful examination of the graph below shows that U.S. net goods exports to China stopped going down in 2013, after declining steadily throughout 2010, 2011 and 2012.    The decline in 2011 and 2012 was a continuation of a longer-term trend line. From about 2000 through 2012, the Chinese government maximized exports to the United States while minimizing its imports from the United States in order to grow the Chinese economy by beggaring the U.S. economy. Its strategy succeeded. China grew by about 10% per year due to increased manufacturing jobs, while median U.S. income declined due...(Read Full Post)