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In reply to the discussion: 90% stock market crash highly likely this year [View all]tama
(9,137 posts)13. Trade deficit, PO and energy prices
Petroleum Imports Drive the Trade Deficit:
America's dependence on foreign oil drives the trade deficit. In 2011, the U.S. imported $332 billion in petroleum-related products, compared to $252 billion in 2010. The number of barrels imported was slightly lower, but oil prices jumped from an average of $99.78/barrel to $74.67/barrel. Petroleum-related products include crude oil, natural gas, fuel oil and other petroleum-based distillates such as kerosene. (Source: U.S. Census, U.S. Oil Imports)
America's dependence on foreign oil drives the trade deficit. In 2011, the U.S. imported $332 billion in petroleum-related products, compared to $252 billion in 2010. The number of barrels imported was slightly lower, but oil prices jumped from an average of $99.78/barrel to $74.67/barrel. Petroleum-related products include crude oil, natural gas, fuel oil and other petroleum-based distillates such as kerosene. (Source: U.S. Census, U.S. Oil Imports)
http://useconomy.about.com/od/tradepolicy/p/Trade_Deficit.htm
If oil was still around 20 buck a barrel it was a decade ago, the energy import deficit would be "only" $60 billion - but of course the imports would not have been declining as they have since 2008 without the multiplication of prices.
Of course this is not just US problem, but global issue - it's hardly coincidence that the PIIGS countries of Eurozone are those that are most dependent from imported fossil fuels.
A platinum coin with astronomical sum printed on it would certainly help to show how ridiculous the whole financial system is, but it does not solve the trade deficit and energy problem.
And nor does goldbug advice of Wiedemars etc. of how to "make money" from collapsing financial system, when the underlying real economy cause of growing and collapsing bubbles is energy crisis. Current form of food production is totally dependent from fossil fuels and you can't eat gold or other metals anymore than paper and bits.
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People who had lost their jobs appreciated having some place to sell their gold jewelry. n/t
Sekhmets Daughter
Jan 2013
#28
Wait!.... it's a safe bet the market WILL crash. It always does. When is the only question. nt
Bigmack
Jan 2013
#8
Pat Robertson predicted a collapse would happen in 1993, and his charts are from God...
JHB
Jan 2013
#10
Wiedemer orginally said "starting before 2013"; I guess that didn't work out
muriel_volestrangler
Jan 2013
#18