Russia and Germany are the most populated European countries. Russia still has a low level of production per person while Germany has a high one.

But although Russia still has a low per capita income, this country was a rival of U.S. during the many years of the Cold War. Russia is the only country that has the nuclear power to destroy America.

Germany is a competitor of U.S. industries in many world markets. So, the development of these European economies is extremely important for United States.

In 1995 the U.S. exported more than $584 billion and imported more than $770 billion. Its trade deficit was about $186 billion.

That year Germany exported about $523 billion and imported around $463 billion. Russia exported about $81 billion and imported around $61 billion. The trade surplus of both countries were $60 and $20 billion respectively.

In 2005 Germany exported about $970 billion and imported around $774 billion. The German trade surplus was about $196 billion.

Russian exports were more than $243 billion and its imports surpassed $125 billion. The Russian trade surplus was about $118 billion.

As you see, both countries increased their surpluses exponentially.

In 2005 the U.S. exported about $904 billion in goods and imported $1,732 billion. The U.S. trade deficit in goods was huge. I will not deny that U.S. exports much in services, but even including this the american trade gap is very big.

This year 2006 the German trade surplus will surpass $200 billion and the Russian will be more than $140 billion.

U.S. will have a record trade deficit.

The dollar could have a drastic correction in its value in the not so distant future.

[Edited by Simon – Grammer]

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