Bottomless Import Hail Mary Black Hole Uncovered: It Is Hong Kong
The miracle that is a global economy in which everyone is looking for export growth has been discussed here at length along with the simple math that makes it nonsense. Today's 'wonderfully' positive improvement in the trade deficit data for the US - which will be extrapolated into a spike in GDP growth and why the S&P should be at 1500 by month's end - does seem a little odd given all the uncertainty. Sure enough, thanks to Sean Corrigan of Diapason Securities, we have our answer. A massive spike in Exports to - drum roll please - Hong Kong!!A 76% rise in exports to this once glorious colony. The US trade deficit fell by $1.8bn thanks to a $2.5bn rise in exports (of which $2.03bn was to Hong Kong). Has Hong Kong become the channel-stuffing center of the world? It appears so since China's exports to Hong Kong have remained extremely high.
US exports to Hong Kong jumped 76% this month, or by just over $2bn!!
While China's exports to Hong Kong continue to stay very high (NOTE - not imports - exports!!)
So is Hong Kong now the global dumping ground for any and every country's dreams of export growth? It sure seems so for now!!