“The trade deficit with China widened to $18.4 billion, the highest since January.”

Just goes to show that China is no longer “just a producer of toys”. It proves that China is now more of a producer of high-end products such as autos, auto parts, aircraft, and aircraft parts. They are now a producer of capital equipment too. They are now a consumer of raw materials that go into these high-end products.

Also I would think the dollar depreciation against other currencies has a lot to do with the increase in exports. This is a little from the long-term norm and people panic when they see higher gas prices but nevertheless it will be a major factor in any recovery. This will change later and the dollar’s strength (if dollar is still alive) will be good for the economy. Some stability in the markets would be most welcome.

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