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Volatility in world trade playing out in currency values


December 1, 2010
By Daily Commercial News

Nov. 30, 2010 – The U.S. goods and services trade deficit pulled back
to USD $528 billion (annualized) in September, according to the Census
Bureau.

Nov. 30, 2010 – The U.S. goods and services trade deficit pulled back to USD $528 billion (annualized) in September, according to the Census Bureau. The deficit was almost $600 billion in June, but it has been less onerous since then. At its worst, the U.S. deficit touched $800 billion in June 2008 and several times from mid-2005 to mid-2006. Its best level was -$300 billion in February 2009.

Huge trade imbalances (China and Japan in surplus and the U.S. in deficit), ongoing European sovereign debt worries (Greece, Ireland, Italy, Spain and Portugal) and the U.S. Federal Reserve’s plan to print more money ($600 billion) are playing havoc with currency markets. The ramifications on individual nations’ gross domestic product (GDP) growth rates can be severe. | READ MORE

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