Yesterday I blogged about a report I’d read in which Canada made a mistake in reporting trade stats, resulting in American prosperity and their trade deficit looking considerably worse than it actually was.
Here’s what I wrote yesterday:
As if to prove I’m the world’s biggest nerd, I try to read things like the Daily Report by Forex Capital Markets LLC every day.
Memo to self: Go to MTV web site later today to get up to speed on all that is groovy and keen.
I’m still digesting this rather technical economic/financial news, but my first impression is that we’ll never hear about it—other than here—which may be a good thing depending on how cool you think you are. Other than that, more good economic news for the United States.
To our surprise, the market completely ignored Canada’s admission to underreporting US imports in the month of November. If you recall, the US trade deficit widened to a new record in November. Such an error by Canada would mean that deficit was much narrower than expected. In fact the US Commerce Department said that the Canadian error could add as much as 0.5% to US Q4 GDP, which could boost Friday’s release to 3.6%. Taking this and the sharp rise in foreign inflow as reported by the TIC data during the month of November in account, we are left with a potentially very positive dollar development.
Meanwhile, the other economic data released today was equally positive. Personal income climbed a whopping 3.7% in the month of December, which was the fastest pace of growth on record; the government began keeping records in 1959. […]
(my bolding)
There are some updates trickling out now, though still not in mainstream media…
Canada cuts Nov trade surplus after computer glitch
2/2/2005
OTTAWA, Feb 1 (Reuters): Canada slashed its November trade surplus yesterday after a computer error distorted import data, shaking confidence in Canadian statistics and likely forcing an upward revision in US growth figures.The change, announced by a red-faced Statistics Canada, lowered a near record November trade surplus that had raised eyebrows at the time by nearly C$2 billion ($1.6 billion).
Not that I’m wearing a tinfoil hat and playing the conspiracy card, but why would they be red-faced over a computer glitch? Wouldn’t this be a human gitch, actually?
PTBC was founded by Mr. Johannesen in 2000.
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