Economic Reports 01/11/08

Summary: Trade Balance confirms an economic slowdown in progress and that double digit stagflation is being advertised as "growth".

Import & Export Prices clearly prove beyond a reasonable doubt that stagflation is ragin in double digits.

We repeat, anyone that denies stagflation is in double digits is either a fool or a liar.

Export Prices ex-ag. Dec +0.3% vs +0.9% Full Report

Inside the number: All exports +0.4%; YOY +6%; Ag +23.5%; ex Ag +4.5%

Import Prices ex-oil Dec +0.3% vs +0.7%. All imports FLAT; YOY +10.9%; petro +50.1%; ex oil +2.9%.

The sixth consecutive year the import index increased and the largest annual increase since the index was first published in 1982.

YOY Ag imports +10.4%; industrial supplies and materials +27.9% ; materials associated with non durable +10.7%

YOY Ag exports +23.5%; industrial supplied and materials +10.8%; materials associated with non durable +13.4%

YOY Non manufactured imports +41.9%; ag +13.6%; Exports meat +24.8%; fish +11.7%; vegetable +32.8%

Trade Balance Nov - -$63.1B -$57.8B Full Report

Inside the number: Unadjusted for price changes YOY; imports +11.4%; exports +13% showing double digit stagflation.

Further domestic and global economic slowing: Exports of capital goods and consumer goods decreased.

Exhibit 10 Real Exports and Imports in 2000 chain weighted dollars: Exports decreasing; industrial supplies, capital goods, consumer goods.

Treasury Budget Dec -$98.2B vs prior -$55.5B Full Report

Inside the number: To be released at 11AM PST.

From last month: The interest on our Treasury debt is $25.3 billion, or 10.2% of the total current month outlays.