This page has been archived and commenting is disabled.
World Trade Slumps By Most Since Financial Crisis
As goes the world, so goes America (according to 30 years of historical data), and so when world trade volumes drop over 2% (the biggest drop since 2009) in the last six months to the weakest since June 2014, the "US recession imminent" canary in the coalmine is drawing her last breath...
As Wolf Street's Wolf Richter adds, this isn’t stagnation or sluggish growth. This is the steepest and longest decline in world trade since the Financial Crisis. Unless a miracle happened in June, and miracles are becoming exceedingly scarce in this sector, world trade will have experienced its first back-to-back quarterly contraction since 2009.
Both of the measures above track import and export volumes. As volumes have been skidding, new shipping capacity has been bursting on the scene in what has become a brutal fight for market share [read… Container Carriers Wage Price War to Form Global Shipping Oligopoly].
Hence pricing per unit, in US dollars, has plunged 14% since May 2014, and nearly 20% since the peak in March 2011. For the months of March, April, and May, the unit price index has hit levels not seen since mid-2009.
World trade isn’t down for just one month, or just one region. It wasn’t bad weather or an election somewhere or whatever. The swoon has now lasted five months. In addition, the CPB decorated its report with sharp downward revisions of the prior months. And it isn’t limited to just one region. The report explains:
The decline was widespread, import and export volumes decreasing in most regions and countries, both advanced and emerging. Import and export growth turned heavily negative in Japan. Among emerging economies, Central and Eastern Europe was one of the worst performers.
Given these trends, the crummy performance of our heavily internationalized revenue-challenged corporate heroes is starting to make sense: it’s tough out there.
But not just in the rest of the world. At first we thought it might have been a blip, a short-term thing. Read… Americans’ Economic Confidence Gets Whacked
»
- 106795 reads
- Printer-friendly version
- Send to friend
- advertisements -
WORLD TRADE is a proxy for China which is completely circling the drain.
If China is circling the drain clockwise, will Australia circle the drain counter clockwise?
Greekovery, Greekovery, Greekovery... Greecings to the world.
"Seasons Greecings"!
If you read Atlas SHouts, you'll find out stimulus has never created any lasting recoveries, and the proponents are well aware of this.
http://www.amazon.com/Atlas-Shouts-Modern-Patriot-Action-ebook/dp/B00OLR...
Keynesian Beauty Contest
$50 gift certificate for the winning example:
Keynesian stimulus was used in the
country _____ in the years ______,
during a __ recession/__ depression,
then the economy turned around within 2
years, and then produced ___ years
of lasting growth WITHOUT A WAR after this.
The increased tax revenue was enough to
pay off all the deficit the stimulus
had created within ______ years.
Keynesian stimulus has been used nigh on 27 years here in the US, and the deficits keep rising. Same for all 20 top western democracies: All have massively increased deficits so they are larger per capita than the US over the last 2 decades. None are paying back the increasing debts. The US has printed $2.9 trillion dollars to prop up the failure, Europe has printed $4 trillion.
done .. gone