The US trade deficit is up sharply despite the weak USD which should be driving exports. But since we don’t make anything we are just selling our natural resources cheaper and this drives the trade deficit up instead of down. Alcoa Aluminum of the US posted a worse than expected quarter due to the continuing disintegration of the American industry while China’s imports of mineral ore and other raw materials are up sharply.
Germany had been the world’s biggest exporter, shipping at twice the rate of China but has slipped to second place. This comes from a weak dollar as well as from the worldwide recession.
China has been cracking down on US banks that have been trying to do the same nonsense there that is considered good business in the US. Rumor is that US banks are being forced to repay huge sums of money gouged from state owned companies that bought derivatives that went bad.
China is trying to avoid a real-estate bubble by increasing capital requirements on their banks and increasing the down payment needed by borrowers. Rated by the value of their assets to their liabilities, China has five of the six healthiest banks in the world, number five is in Brazil.
Being a banker in China is a good job but doesn’t pay what it does in the US. Bankers in China don’t have the same opportunities as Wall Street bankers since corruption in China can carry the death penalty unlike here where it carries a huge bonus. www.prairie2.com