De-Industrialization Continiues

China carries on it march towards world economic dominance by continuing to widen the trade surplus. Chinese data shows that through September exports exceeded imports by $110.9 billion, exceeding the all-time high of $102 billion in 2005. The $111 billion surplus was just for the first nine months setting the expected year end surplus to be the largest ever recorded. For September, China had a $14.1 billion surplus with the US, and sold $8.8 billion more of goods to the European Union than it bought from the bloc.

Thanks to the ever increasing surpluses China now also has the largest foreign exchange reserves in the world, totaling near one trillion dollars (that is trillion with a T). China uses these huge reserves to help finance the US debt, and not only the federal one but more importantly the corporate and consumer portions. This will allow them to one day just pull the plug and flush the US economy down the toilet, which is precisely why we look the other way when China acts against us, like when it shoots lasers at our satellites.