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August 17, 2005

WSJ.com - High Oil Prices Put Pressure On U.S. Trade Balance in June

Yes. The dollar is overvalued:

WSJ.com - High Oil Prices Put Pressure on U.S. Trade Balance in June: Soaring prices and high demand for foreign crude oil put renewed pressure on the U.S. trade balance in June, the government reported Friday.... The Commerce Department said the U.S. deficit in international trade of goods and services grew 6.1% to $58.82 billion. Exports were basically unchanged, advancing to $106.83 billion from $106.78 billion in May, and imports rose 2.1% to $165.65 billion, a record high.... The value of crude-oil imports rose to a record $14.58 billion in June as the average price per barrel climbed $1.32 to $44.40. That marked the second highest price ever; the highest was $44.76 in April.... The U.S. paid $19.93 billion for all types of energy-related imports in June.... Deficits with major trading partners also got bigger in June, Commerce said. The U.S. shortfall with China widened to $17.59 billion from May's $15.75 billion. The U.S. trade deficit with Japan grew to $6.95 billion from $6.58 billion in May. The trade gap with the euro area increased to $8.19 billion from $8.12 billion. The deficit with Canada widened to $5.40 billion from $4.75 billion. The U.S. gap with Mexico rose to $4.76 billion from $4.48 billion....

Posted by DeLong at August 17, 2005 09:24 PM