Trouble Ahead…US Imports & Exports are FALLING! Money Velocity in U.S. 50 Percent of 2009 Levels

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US Imports & Exports are FALLING! Money Velocity in U.S. 50 Percent of 2009 Levels

Submitted by IWB

US Imports Collapse Most Since Lehman

Anyone scratching their head how it is possible that in an environment of a soaring dollar the US trade balance just tumbled, and printed its smallest monthly deficit since 2009, here is the answer: in January, US imports (with the delta entirely in the goods, not services, column) plunged from $232 billion to $222 billion, a whopping $10.2 billion or 4.4% drop, and the biggest monthly decline in US imports since the peak of the financial crisis in the aftermath of the Lehman collapse.

http://www.zerohedge.com/news/2015-04-02/us-imports-collapse-most-lehman

The Strong Dollar Is Weighing On Major U.S. Exporters

Two out of three big U.S. exporters–those with at least one-fourth of their total sales overseas–said the appreciation of the dollar has had a negative impact on their businesses. And nearly one-fourth of big exporters said they have reduced their capital spending plans as a result.

Executives across many sectors–from construction to manufacturing to healthcare–pointed to the strengthening U.S. dollar against most major currencies as an emerging risk that has developed over the past six months.

“We are in a midst of an ugly contest to see whether the eurozone, Japan or Canada can depreciate the most against the U.S. dollar, and China is probably next…

http://blogs.wsj.com/economics/2015/03/11/the-strong-dollar-is-weighing-on-major-u-s-exporters/

And China is about to peg their currency to gold and thus devalue the dollar which will make all of the countries siding with China evaluate if they will do commerce with the US, and thus create massive supply shortages in the US. The only action the US is taking is using CIA/ Neocons to start wars that aren’t really taking, color revolutions that aren’t really creating regime change anymore, and stalking people on the internet and filling said internet with garbage, that US citizens mostly see, not foreign populations as their governments have banned US spam and disinformation, for the most part. In other words, the US strategy is now ineffective, and time is one thing that the US does not have — because China will soon need to formally de-couple completely from the dollar for the final implementation of their new platforms.

Here is what a HIGH dollar does to US exports and jobs: destroys them!

Coke To Fire 1800, Caterpillar Laying Off 200

http://www.zerohedge.com/news/2015-01-08/coke-fire-1800-caterpillar-laying-200

Will OPEC bankrupt US shale producers?

China’s Devaluation of the Yuan: A Global Economic Imbalance
…quarrels over China’s currency manipulation. The undervalued renminbi helps China’s export sector by making foreign imports more expensive, and Chinese exports cheaper in foreign markets. It also encourages outsourcing production and jobs from the United States, contributing to unemployment here at home.

http://fordhampoliticalreview.org/chinas-devaluation-of-the-yuan-a-global-economic-imbalance/

2003 article: The benefits of a lower dollarHow the high dollar has hurt U.S. manufacturing producers and why the dollar still needs to fall further

The benefits of a lower dollar: How the high dollar has hurt U.S. manufacturing producers and why the dollar still needs to fall further

How U.S. Firms Benefit When The Dollar Falls

http://www.investopedia.com/articles/economics/09/how-us-benefits-when-dollar-falls.asp

How the Rising Dollar May Impact Your Portfolio

http://www.zacks.com/stock/news/145193/how-the-rising-dollar-may-impact-your-portfolio

… already: Strong US Dollar Hurting Corporate Profits
image: http://images.intellitxt.com/ast/adTypes/icon1.png

Strong US Dollar Hurting Corporate Profits

Strong Dollar Dents Coca-Cola’s Profit

The U.S. Economy is Dead

http://www.zerohedge.com/news/2015-02-19/us-economy-dead

Supposedly money velocity in US 50 percent of 2009 levels too

This is what the U.S. government (and other Western governments) has been doing for the past 6+ years with its 0% interest rate: charring a corpse. Further proof that the U.S. economy is already dead comes from a chart of the heartbeat of the U.S. economy (and any capitalist economy) – it’s “velocity of money”….More Here

 

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