China isn't too concerned they'll keep loaning as long as we're borrowing to fuel
"Using a methodology that determines the number of jobs needed to produce exports and imports, the EPI study found that 1.5 million jobs were lost to lower-wage Chinese competition in the 14-year period between 1989 and 2003. During that time, the U.S. trade deficit with China rose twenty-fold, from $6.2 billion to $124 billion. It is expected to increase another 20 percent in 2004, to $150 billion."
http://usinfo.state.gov/ei/Archive/2005/Jan/12-31762.html
The U.S. Department of Commerce today reported that the international deficit in goods and services trade reached a record level of $726 billion in 2005, an 18% increase over 2004. The U.S. merchandise deficit alone, which excludes services, was $782 billion, also an 18% increase. The overall deficit increased $1 billion in December alone, to the third highest monthly level on record. The goods and services deficit as a share of U.S. gross domestic product (GDP) increased to an unprecedented 5.8% in 2005 (Figure A ). Rapid increases in the price of oil and related products were responsible for 63% of the increase in the deficit. The growth of the trade deficit with China, which reached $202 billion in 2005, was responsible for the entire increase in the United States’ non-oil trade deficit. The trade deficit in manufactured products (net of refined petroleum) increased $46 billion, to $655 billion (an 8% increase).
"Dramatic increases in the cost of petroleum products and the volume of oil imports were responsible for nearly two-thirds of the increase in the trade deficit in 2005. The average price of crude oil imports increased 39% over 2004. In addition, the volume of petroleum product imports also increased 4% in 2005."
http://www.epinet.org/content.cfm/webfeatures_econindicators_tradepict20060210
ainkiller:
