B R E A K I N G: Worst Ever Trade Gap

[Realistbear]

http://uk.finance.yahoo.com/news/UK-Records-Highest-Ever-Goods-skynews-225098997.html;_ylt=AhPIxoRSQ5D8F4hFqWhWUvLSr7FG;_ylu=X3oDMTE4bDVhbW9sBHBvcwMzBHNlYwN5ZmlUb3BTdG9yaWVzBHNsawN1a3JlY29yZHNoaWc-?x=0

UK Records Highest Ever Goods Trade Gap

Sky News 2011, 9:58, Tuesday 29 March 2011

Britain's goods trade gap has widened to its highest level since records began, with a £26.8bn difference between the value of imports and exports.

The figure was released alongside the final revision of GDP for the fourth quarter of the year, which put it at -0.5%, slightly up from the previous estimate of -0.6%.

[The Masked Tulip]

No wonder things are bad if we broke our trade gap.

[aa3]

The new Tory tax on oil producing should help out.

[Realistbear]

But but but...the "lower" pound and growth in manufacturing sector was supposed to reduce the gap?

Edited March 29, 2011 by Realistbear

[zilly]

But but but...the "lower" pound and growth in manufacturing sector was supposed to reduce the gap?

Growth in the manufacturing sector is of little use to the country if that manufacturing is all done abroad.

We have lots of warehouses but few factories...

All we're seeing now is the unveiling of the true state of affairs in the UK, not the la-la land economy of the past decade which was built on self-cert mortgages and ten credit cards per person (and the equally illusory dot-com economy that proceeded it).

We have been hollowed out by the globalists and sadly that fact will reveal itself in the coming years.

[BalancedBear]

And this also shows the effects that devaluation of sterling has too. The BOE just do not understand modern manufacturing. Most manufacturers still have to import components from elsewhere which are getting ever more expensive. The manufacturers are having to cut margins as they cannot just jack their prices up in a global market. As manufacturing does grow, the trade gap will fall much more slowly as the manufacturers will be sending most of their earnings abroad again to purchase components to make whatever they make. Also as the rest of the world wants lots of raw materials too, we will have to pay ever more to buy things in. The BOE are deluded if they think we have spare capacity to be self-sufficient.

[Ruffneck]

Just in time for cameroons new carbon tax at 13 pounds a tonne , that will make Uk exporters even more uncompetitive

[Buccaneer]

http://uk.finance.yahoo.com/news/UK-Records-Highest-Ever-Goods-skynews-225098997.html;_ylt=AhPIxoRSQ5D8F4hFqWhWUvLSr7FG;_ylu=X3oDMTE4bDVhbW9sBHBvcwMzBHNlYwN5ZmlUb3BTdG9yaWVzBHNsawN1a3JlY29yZHNoaWc-?x=0

UK Records Highest Ever Goods Trade Gap

Sky News 2011, 9:58, Tuesday 29 March 2011

Britain's goods trade gap has widened to its highest level since records began, with a £26.8bn difference between the value of imports and exports.

The figure was released alongside the final revision of GDP for the fourth quarter of the year, which put it at -0.5%, slightly up from the previous estimate of -0.6%.

So this is a record breaking economy to be proud of !

[mattyfc]

http://uk.finance.yahoo.com/news/UK-Records-Highest-Ever-Goods-skynews-225098997.html;_ylt=AhPIxoRSQ5D8F4hFqWhWUvLSr7FG;_ylu=X3oDMTE4bDVhbW9sBHBvcwMzBHNlYwN5ZmlUb3BTdG9yaWVzBHNsawN1a3JlY29yZHNoaWc-?x=0

UK Records Highest Ever Goods Trade Gap

Sky News 2011, 9:58, Tuesday 29 March 2011

Britain's goods trade gap has widened to its highest level since records began, with a £26.8bn difference between the value of imports and exports.

The figure was released alongside the final revision of GDP for the fourth quarter of the year, which put it at -0.5%, slightly up from the previous estimate of -0.6%.

The figures came in better than expected, would not be surprised to see further large revisions also.

The 3rd quarter was revised down from £9.6bn to £8.7bn, Q4 was £10.5bn v £10.3bn expected, so overall £0.7bn better than expected over Q3 & Q4.

December Q4 will also have been affected by transport problems and getting goods out of the country. I would expect a very strong bounce in Q1 as the catch up from December takes place.

[Fishman]

http://uk.finance.yahoo.com/news/UK-Records-Highest-Ever-Goods-skynews-225098997.html;_ylt=AhPIxoRSQ5D8F4hFqWhWUvLSr7FG;_ylu=X3oDMTE4bDVhbW9sBHBvcwMzBHNlYwN5ZmlUb3BTdG9yaWVzBHNsawN1a3JlY29yZHNoaWc-?x=0

UK Records Highest Ever Goods Trade Gap

Sky News 2011, 9:58, Tuesday 29 March 2011

Britain's goods trade gap has widened to its highest level since records began, with a £26.8bn difference between the value of imports and exports.

The figure was released alongside the final revision of GDP for the fourth quarter of the year, which put it at -0.5%, slightly up from the previous estimate of -0.6%.

Nowt to worry about.

£25bn worth of Chinese 'Royal Wedding' tat imported in readyness for next month.

[#1 on West side]

sorry... couldn't resist...

[Traktion]

But but but...the "lower" pound and growth in manufacturing sector was supposed to reduce the gap?

Give it time... we have to wean the voters off deficit spending, as well as consumers off their credit cards.

There is only one way you can sustain an ever increasing trade deficit and that is through borrowing. I very much doubt there is much left in the tank for this to continue for much longer (nor should it).

And this also shows the effects that devaluation of sterling has too. The BOE just do not understand modern manufacturing. Most manufacturers still have to import components from elsewhere which are getting ever more expensive. The manufacturers are having to cut margins as they cannot just jack their prices up in a global market. As manufacturing does grow, the trade gap will fall much more slowly as the manufacturers will be sending most of their earnings abroad again to purchase components to make whatever they make. Also as the rest of the world wants lots of raw materials too, we will have to pay ever more to buy things in. The BOE are deluded if they think we have spare capacity to be self-sufficient.

If you are adding value through big brains and high tech mechanisation, the cost of the raw materials isn't the bit you are trying to influence most. Making the big brains and mechanisation cheaper, means that the value we add costs less to those buying our exported goods.

If we were doing simple manufacturing, then the cost of materials would be a larger* consideration (such as in, say, China). Where you have to rely on expensive, smart people and complicated (and already purchased) capital goods to add substantial value, it would suggest to me that the reverse is true.

* Actually, thinking about it, it probably just makes devaluing less useful, but not any more harmful; your workforce would be cheaper to importers of your goods, but they would be a small component in the cost of the goods anyway. In other words, the value they add is relatively small.

Edited March 29, 2011 by Traktion

[Tired of Waiting]

http://uk.finance.yahoo.com/news/UK-Records-Highest-Ever-Goods-skynews-225098997.html;_ylt=AhPIxoRSQ5D8F4hFqWhWUvLSr7FG;_ylu=X3oDMTE4bDVhbW9sBHBvcwMzBHNlYwN5ZmlUb3BTdG9yaWVzBHNsawN1a3JlY29yZHNoaWc-?x=0

UK Records Highest Ever Goods Trade Gap

It is not as bad.

Over the last three months of 2010 (...)

However, the UK exports more services than it imports, so the overall goods and services trade gap is narrower, at almost £10.5bn.

In a quarter. That would mean 42bn/year, some 3% of GDP. It is OK.

[Executive Sadman]

How much of that is due to oil and gas imports due to cold weather in Nov and Dec?

Or do they just not count that like Brown didnt bother counting housing as a cost of living?

[Executive Sadman]

£42bn is the deficit?

Whats the total import number?

EU-twats get 10% of imports via duty, how much in total are they robbing us for, along with the £15billion or so 'membership'?

Stinking EU.

[Arbitrage]

But but but...the "lower" pound and growth in manufacturing sector was supposed to reduce the gap?

And Bank of England loose monetary policy has got nothing to do with a weak pound creating imported cost-push inflation

[Injin]

And Bank of England loose monetary policy has got nothing to do with a weak pound creating imported cost-push inflation

Except for being the sole cause of it.

[Traktion]

And Bank of England loose monetary policy has got nothing to do with a weak pound creating imported cost-push inflation

In the pound is weaker, the cost of imported goods goes up, but the wages paid to workers remains the same. Therefore, the relative cost of labour and repayment/running costs on capital equipment has decreased (which is the value we add). Thus, the exported price of the goods is relatively cheaper: imports + added value = export price.

[OnlyMe]

In the pound is weaker, the cost of imported goods goes up, but the wages paid to workers remains the same. Therefore, the relative cost of labour and repayment/running costs on capital equipment has decreased (which is the value we add). Thus, the exported price of the goods is relatively cheaper: imports + added value = export price.

Except our manufacturers (especially new ones) cannot afford the higher cost of better machinery (it is nearly all mmaded abroad, that sector was ditched too) on top of not being able to afford poxy rents/rates/land/commercial propoety prices.

The dipshits at the central bank don't even understand banking, they know ****** all about what is required to operate a manufacturing business in the world of reality and not their patehtic fan chart world of made up nonsense.

[Injin]

Except our manufacturers (especially new ones) cannot afford the higher cost of better machinery (it is nearly all mmaded abroad, that sector was ditched too) on top of not being able to afford poxy rents/rates/land/commercial propoety prices.

The dipshits at the central bank don't even understand banking, they know ****** all about what is required to operate a manufacturing business in the world of reality and not their patehtic fan chart world of made up nonsense.

They don't care either - why would they?

Thieves don't give a shit how hard it is to make the things they steal. For them they are free.

[Arbitrage]

In the pound is weaker, the cost of imported goods goes up, but the wages paid to workers remains the same. Therefore, the relative cost of labour and repayment/running costs on capital equipment has decreased (which is the value we add). Thus, the exported price of the goods is relatively cheaper: imports + added value = export price.

Fail.

Rising imported raw materials, components and energy costs + static wages = rising average cost

Rising average cost = rising export prices

It should be obvious by now that a weak currency does not create an export-led recovery - just inflation that allows banksters to steal from savers

Simples.

[Arbitrage]

Except for being the sole cause of it.

Yep, you've got it.

I'm amazed tha few others do - after all most of the stuff that we buy in Britain is imported

So how can a fall in sterling not cause £ prices to rise!!!!!!!!

What do people expect - Tesco to keep sterling prices constant AND make a loss due to higher stock costs (created by the falling £)

[Arbitrage]

They don't care either - why would they?

Thieves don't give a shit how hard it is to make the things they steal. For them they are free.

Agree again. You can over analyse - this really is simple. It's feudalism. Mervyn King is life the sheriff of Nottingham - robbing from the poor to give to the rich

[DotBomb]

Fail.

Rising imported raw materials, components and energy costs + static wages = rising average cost

Rising average cost = rising export prices

It should be obvious by now that a weak currency does not create an export-led recovery - just inflation that allows banksters to steal from savers

Simples.

Fail.

The export cost does indeed go down, as the static wage locally is actually a declining wage when not measured in sterling.

[Injin]

Yep, you've got it.

I'm amazed tha few others do - after all most of the stuff that we buy in Britain is imported

So how can a fall in sterling not cause £ prices to rise!!!!!!!!

What do people expect - Tesco to keep sterling prices constant AND make a loss due to higher stock costs (created by the falling £)

A fall in sterling is a rise in prices, it's just different terms for the same thing.

"The man walked out of the room" is equal to "the man walked into the outdoors." One of them just sounds clunky.

Inflation all the way, the alternative is to cancel the "debts" and the "savings." Ideally ofc the banksters would like to cancel the savings and keep the debts.