• 6 minutes WTI @ 67.50, charts show $62.50 next
  • 11 minutes Saudi Fund Wants to Take Tesla Private?
  • 17 minutes Why hydrogen economics is does not work
  • 9 hours Starvation, horror in Venezuela
  • 19 mins The EU Loses The Principles On Which It Was Built
  • 11 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 6 hours Crude Price going to $62.50
  • 15 hours Anyone Worried About the Lira Dragging EVERYTHING Else Down?
  • 9 hours Chinese EV Startup Nio Files for $1.8 billion IPO
  • 20 hours Oil prices---Tug of War: Sanctions vs. Trade War
  • 20 hours Correlation does not equal causation, but they do tend to tango on occasion
  • 8 hours WSJ *still* refuses to acknowledge U.S. Shale Oil industry's horrible economics and debts
  • 20 hours Russia retaliate: Our Response to U.S. Sanctions Will Be Precise And Painful
  • 1 day WTI @ 69.33 headed for $70s - $80s end of August
  • 22 hours Monsanto hit by $289 Million for cancerous weedkiller
  • 1 day California Solar Mandate Based on False Facts
Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

America: Export Nation?

There’s some interesting data emerging on the world trade situation.

One of the surprising things is the U.S. export market is actually fairing reasonably well.

People often pan America for having no exports. It's a common complaint the U.S. doesn't produce anything the rest of the world wants.

This is untrue. These critics latch onto the fact the U.S. produces almost no consumer goods. America doesn't make t-shirts and CD players. It's just not cost effective for these low-end products.

American export value peaked in early 2007 at just under $340 billion quarterly. Of that, only $40 billion came from consumer products.

What America does produce is capital goods. Engines, boilers and factory components. High-value products that are used by developing countries to make lower-value things. America gets 40% of its export revenue here.

And even with the global crisis, the capital goods market has remained relatively firm. Exports peaked in Q2 2008 at $118 billion for the quarter. In the first quarter of 2009, as the crisis broke, they fell to $95 billion. But capital exports held fast at these levels through the second and third quarters of 2009. We'll get the fourth quarter numbers soon, and see if the trend keeps up.

Although this is a 20% decline, it's quite shallow in the big scheme of things. Exports today are at the same level as in 2006. Still 35% above 2003 levels.

Signaling that high-value products might be a good place to be. There are still factories being built globally. And there aren't many places builders can get the components. America may hold a strong niche.

One reason not to write the U.S. off in the economic order.

Here's to doing your thing,

By. Dave Forest of Notela Resources




Back to homepage

Trending Discussions


Leave a comment
  • Anonymous on January 21 2010 said:
    let's not forget how the export numbers are aided by being the leading exporter of death, that being the number one arms exporter in the world.
  • Anonymous on January 22 2010 said:
    I studied engineering in Chicago and L.A., and worked as an engineer successfully for the U.S. Navy, and unsuccessfully in L.A. I have taught (economics) at engineering schools in Singapore, Bangkok, Lisbon and Sydney (Australia). If the U.S. got down to business, as they did during WW2, they might be unbeatable again. What's the problem I ask - although I know the answer.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News