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U K Trade Deficit Worsening

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Now hitting the newswires:

U.K. Trade Deficit Widens to Record as Imports Surge

Sept. 9 (Bloomberg) -- The U.K.’s trade deficit widened to a record in July as purchases of chemicals and oil drove imports to the highest level in two years.

The goods-trade gap widened to 8.7 billion pounds ($13.4 billion) from 7.5 billion pounds and June, the Office for National Statistics said today in London. The median of 13 forecasts in a Bloomberg News survey was for a 7.5 billion-pound deficit. Exports fell 0.9 percent and imports rose 3.1 percent.

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Some Scotch quango subsidises Barclays :ph34r:

Instead of giving tax incentives, any incentives for manufacturing businesses to

set up there.

No jobs, no middle class[ workers] , = no UK [ as we know it].

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The UK’s seasonally adjusted deficit on trade in goods and services was £4.9 billion in July, compared with the deficit of £3.9 billion in June.

Exports fell slightly in July while imports continued to rise.

This isn't what Merv was hoping for.

http://www.statistics.gov.uk/pdfdir/trd0910.pdf

uktrade0710.gif

uktrade0710b.gif

This data says sterling is still too high. It will fall - at some point. Difficult to say when, it could take a few months, or a few years, but it will fall.

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This data says sterling is still too high. It will fall - at some point. Difficult to say when, it could take a few months, or a few years, but it will fall.

When the Chinese sell off their sterling holdings.

And how are we supposed to pay for imported food and energy? Thanks Maggie!

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Our current problems are fundamentally due to a long-term trade deficit with positive feedback via bank leverage i.e. We buy foreign stuff, then that money comes back via more lending.

So is a big devaluation now inevitable?

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Thank God for that !

After the Haifax figs yesterday i was on a downer, this has picked me up!

2 things holding up the £, the FED IS BUYING OUR DEBT!............but the other is house prices, once we see major falls THEN i think we can expect to see the £ crash & burn.

Mike

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Some Scotch quango subsidises Barclays :ph34r:

Instead of giving tax incentives, any incentives for manufacturing businesses to

set up there.

No jobs, no middle class[ workers] , = no UK [ as we know it].

That as where we are heading, merv understands dip shit about how to run an economy, only ponzi scheme economics and fake GDP and growth. Schooled and groomed with ben bernanke.

Edited by OnlyMe

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Our current problems are fundamentally due to a long-term trade deficit with positive feedback via bank leverage i.e. We buy foreign stuff, then that money comes back via more lending.

So is a big devaluation now inevitable?

30% for starters! Cameron should be talking it down, at least he can do that. But wait, if he talks it down Johnny foreigner wont buy government debt! We're up the creek aren't we!!

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The UK’s seasonally adjusted deficit on trade in goods and services was £4.9 billion in July, compared with the deficit of £3.9 billion in June.

Exports fell slightly in July while imports continued to rise.

This isn't what Merv was hoping for.

There seem to be mixed messages from the media - one minute it's record results from manufacturing (because of weak sterling) then it's increasing balance of trade deficits.

I know that the two aren't actually mutually exclusive but there is an awful lot of confusion over just how much the devaluation of sterling has helped.

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When the Chinese sell off their sterling holdings.

And how are we supposed to pay for imported food and energy? Thanks Maggie!

Stop trolling u pleb. You can't blame this on Maggie, unless you think the taxpayer should carry on subsidizing poor quality goods and things that you can't sell at a profit. We had 13 years of labour, what did they change ... not a lot apart from our debt levels.

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When the Chinese sell off their sterling holdings.

And how are we supposed to pay for imported food and energy? Thanks Maggie!

They can't.

That why we have a deficit.

They're desperately buying up J bonds too.

It'll all end in tears. For China hopefully.

Edited by Frank Sidebottom

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Stop trolling u pleb. You can't blame this on Maggie, unless you think the taxpayer should carry on subsidizing poor quality goods and things that you can't sell at a profit. We had 13 years of labour, what did they change ... not a lot apart from our debt levels.

I hate to be pedantic but if 13 years of Tony's "Third Way" "New Labour" nonsense didn't change anything then they are the same as they were, in other words Tony didn't correct the mistakes of the previous lot. I agree Bliar didn't change course, if anything he increased the problems of the previous administration. So whilst the critisism of Thatcher is a bit tired it is hardly a troll. Bliar was a Thatcherite in all but name and invited the vile old witch to tea when he won the election.

It is now up to Toff and Toffer to undo the crass ineptitude of the previous two administrations as well as the lack of foresight of Wilson, Heath and their forerunners. Where we are now has been a long time coming. The milk snatcher was but one in a long history of con artists pretending that the UK could ignore economic realities that people don't want to hear.

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There seem to be mixed messages from the media - one minute it's record results from manufacturing (because of weak sterling) then it's increasing balance of trade deficits.

I know that the two aren't actually mutually exclusive but there is an awful lot of confusion over just how much the devaluation of sterling has helped.

Ficticious growth - just inflation.

Wait till the public chokes on it - both interna and imported varieties, see how money priting and fake base rates fixes that - it won;t in any way whatsoever. In the meantime during all this bank propping, bonus pumping idiocy the real competitive position of UK and their prospects will have worsened still.

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I hate to be pedantic but if 13 years of Tony's "Third Way" "New Labour" nonsense didn't change anything then they are the same as they were, in other words Tony didn't correct the mistakes of the previous lot. I agree Bliar didn't change course, if anything he increased the problems of the previous administration. So whilst the critisism of Thatcher is a bit tired it is hardly a troll. Bliar was a Thatcherite in all but name and invited the vile old witch to tea when he won the election.

It is now up to Toff and Toffer to undo the crass ineptitude of the previous two administrations as well as the lack of foresight of Wilson, Heath and their forerunners. Where we are now has been a long time coming. The milk snatcher was but one in a long history of con artists pretending that the UK could ignore economic realities that people don't want to hear.

Yep.

...I'll just mention RTB and PFI too.

Perhaps a 50 year c ock up is unfixable though.

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Stop trolling u pleb. You can't blame this on Maggie, unless you think the taxpayer should carry on subsidizing poor quality goods and things that you can't sell at a profit. We had 13 years of labour, what did they change ... not a lot apart from our debt levels.

I think the bit you have wrong is that Labour changed this country a lot, unfortunately not for the better

Of course it's Maggies' fault :rolleyes:

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Thank God for that !

After the Haifax figs yesterday i was on a downer, this has picked me up!

2 things holding up the £, the FED IS BUYING OUR DEBT!............but the other is house prices, once we see major falls THEN i think we can expect to see the £ crash & burn.

Mike

The US are buying our debt and we are buying their debt. What a merry-go-round.

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Good point. I had noticed they didn't mention services. Usually we do much better there (or at least much less bad).

You can give a rough calculation by looking at the UK balance of trade and the UK balance of trade in goods.Services seems to be +3.5 billion/month.

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This data says sterling is still too high. It will fall - at some point. Difficult to say when, it could take a few months, or a few years, but it will fall.

There is a 2-3 year lag between a fall in the pound and increasing exports. Manufactures need confidence that the pound will stay low before investing in new capacity.

Fortunately news like this send the pound down. Inflation is good, add it to HPC and you get reducing real equity.

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  • 238 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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