Japan Oil Imports increase and Exports of Manufactured Goods decrease resulting in First Trade Deficit in 31 Years

Posted by PITHOCRATES - February 19th, 2012

Week in Review

Japan sets another record.  The country that once could do no wrong in its export market sees its first trade deficit in 31 years (see Japan logs record trade deficit in January by Rie Ishiguro posted 2/19/2012 on Reuters).

Japan posted its biggest ever trade deficit in January…may undermine the country’s ability to finance its debt.

The trade deficit stood at 1.475 trillion yen ($18.59 billion), against median market forecast for 1.468 trillion yen, marking a fourth straight month of deficit, as weak global demand and a strong yen hurt exports and robust fuel demand boosts imports.

Japan doesn’t have a lot of oil.  They have to import most of it.  And as domestic oil demand rises and demand for their manufacturing exports fall their trade deficit increases.  If Japan had more domestic oil fields to exploit they probably wouldn’t have a trade deficit.  Even with their falling exports.  

You know, I can think of another country with a trade deficit.  Who has a far greater land mass than Japan.  And far more coast line.  With who knows how much oil beneath.  And they, too, have an oil-thirsty economy.  But they, too, import most of their oil.  Not because they have no other choice.  But because of anti-oil policy keeping that oil undiscovered.  And unrefined.  Can you name that country?  Here’s a hint.  Its initials are U.S.A.

The Obama administration stimulus of 2009 saved millions of jobs.  Though there is no way to actually measure this the administration claimed it nonetheless.  Because they have a magical crystal ball.  Just like the one I have.  And when I look into it I see remarkable things.  In particular I see the future where we exploit our domestic oil reserves.  In that future there is a trade surplus.  Millions of jobs saved.  And millions of new jobs added monthly bringing the unemployment rate below 5% (i.e., full employment).  A federal budget surplus.  A triple-A credit rating from all the credit rating agencies.  A strong U.S. dollar.  And a very low inflation rate.  A nice future.  A very nice future indeed.  And a future that can be supported by the math.

If we bring new domestic oil to market all of these things will happen.  How do we know this?  Because when we bring less domestic oil to market the exact opposite happens.  As the Obama administration has proven by their policies.

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