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Sunday, September 02, 2007

Low-ride in, bouncy-ride out


Have you ever been out to Land's End and watched those container ships sail in under the Golden Gate low in the water - stacked to the bridge with loaded containers?

On the way back out they ride high the water - lots of red showing above the water line.
That whole experience is visual evidence of the U.S. trade deficit with China. The ships come in loaded with goods and sail back empty, or damn close to empty.

However, once in awhile some good news comes along that helps level the playing field.

This morning I read that
Xiamen Airlines of China has finally been identified by Boeing as the purchaser of 25 737-800 airplanes worth $1.9 billion at list prices. Up until now the order for 25 new aircraft was listed by Boeing as coming from an "unidentified international customer."

A check for two-billion dollar coming from China to the U.S. softens the blow of seeing all those bouncy empty ships sailing back to China every day.


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