World export growth slowing rapidly now.
From Zerohedge this morning:
| "Japan trade deficit hits record", "Australia Records First Trade Deficit in 11 Months on 8% Plunge in Exports", "Brazil Posts First Monthly Trade Deficit in 12 Months " then of course this: "[US] Trade deficit hits 3-year record imbalance", and finally, as of late last night, we get the following stunning headline: "China Has Biggest Trade Shortfall Since 1989 on Europe Turmoil." |
The world economy is screaming for further fiscal stimulus now, but it’s not going to happen because of fears over debt and deficits.
2 comments:
Eurozone depression, coming a place near you soon.
(Decouple is fantasy in globalized economy anyway.)
No matter how large a fiscal deficit a country runs, the mercantilist and fiscal surplus nations just buy up the financial assets. They have voracious appetites for others financial paper. China, Germany, Brazil, Finland. Dead beats of the WTO. All of them never carry their own weight in meeting their domestic demand for financial assets.
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