{"id":523352,"date":"2010-04-11T10:30:00","date_gmt":"2010-04-11T14:30:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/china-trade-imbalance-usa-oil-2010-4"},"modified":"2010-04-11T10:30:00","modified_gmt":"2010-04-11T14:30:00","slug":"oil-not-china-is-the-real-destroyer-of-americas-trade-balance","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/523352","title":{"rendered":"Oil, Not China, Is The Real Destroyer Of America&#8217;s Trade Balance"},"content":{"rendered":"<p>UBS&#8217;s head of Asia-Pacific economics argues that the real global trade imbalance isn&#8217;t U.S.-China, it is U.S.-oil. As shown below, current account surpluses from fuel exporting-nations have been a far larger driver of total global trade imbalances coming from emerging markets.<\/p>\n<p>China&#8217;s current account surplus (in blue) has been large in recent years, as a percentage of the global economy, but it has been dwarfed by fuel exporters (in green):<\/p>\n<p><img decoding=\"async\" src=\"http:\/\/static.businessinsider.com\/image\/4bc1d3e87f8b9a1b0cf40200\/chart.png\" border=\"0\" alt=\"Chart\" \/><\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"http:\/\/english.caing.com\/2010-03-31\/100130781_1.html\">Jonathan Anderson of UBS, via Caixin:<\/a><\/p>\n<p style=\"padding-left: 30px;\">Looking at the movements from the late 1990s through 2006, when the overall U.S. deficit worsened from 2 percent of GDP to nearly 7 percent of GDP at the trough, a full three percentage points of that adjustment came from other advanced economies and from fuel imports; only two percentage points came from China and other non-fuel emerging markets. And the recent drop in the U.S. deficit had almost nothing to do with China; again, it was oil prices and developed trade that explains the entire swing over the past 18 months.<\/p>\n<p style=\"padding-left: 30px;\"><img decoding=\"async\" src=\"http:\/\/static.businessinsider.com\/image\/4bc1d8587f8b9aa4088c0800\/chart.png\" border=\"0\" alt=\"Chart\" width=\"400\" \/><\/p>\n<p>Thus the U.S. could use a little less finger-pointing at China&#8230; and a lot less foreign oil usage&#8230; if it really wants to correct its global trade imbalance.<\/p>\n<p>This is a huge argument against U.S. trade protectionism since protectionism would miss the largest cause of America&#8217;s trade deficit while only hurting U.S. export prospects by pissing off trade partners.<\/p>\n<p><a href=\"http:\/\/www.businessinsider.com\/china-trade-imbalance-usa-oil-2010-4#comments\">Join the conversation about this story &#187;<\/a><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/TheMoneyGame\/~4\/86c-pEthdzs\" height=\"1\" width=\"1\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>UBS&#8217;s head of Asia-Pacific economics argues that the real global trade imbalance isn&#8217;t U.S.-China, it is U.S.-oil. As shown below, current account surpluses from fuel exporting-nations have been a far larger driver of total global trade imbalances coming from emerging markets. China&#8217;s current account surplus (in blue) has been large in recent years, as a [&hellip;]<\/p>\n","protected":false},"author":6205,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-523352","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/523352","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/6205"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=523352"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/523352\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=523352"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=523352"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=523352"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}