Happy New Year?
Following up on Chinese Take Out?
The GM sitch in a nutshell: Sales, profits and market share all down. Fired 15K American workers after the American public bailed GM out for only $50 billion plus. Executives are counting on China and Mexico with a slowing Chinese economy. And now this...
Towards proving that point, in the first two months of 2019 China's industrial output grew at the slowest pace of expansion in 17 years. Confirming... Japanese exports fell for a third straight month in February. Exports fell 1.2% Y/Y, following a sharp 8.4% Y/Y decrease in January.
A picture is worth a thousand words? We showed our readers three graphs related to China in Big Trouble in Little China? How bout five more covering the EU and US? Buckle up...
German factory orders Mom have negligible growth in 3 months, and are NEGATIVE in 8 of the last 13 months. Confirming...
EU GDP in a steady 60% decline since January 2018. Confirming...
US Non Farm Payrolls in February as the U.S. economy only added 20K jobs. National Economic Council Director Larry Kudlow called the drop in the headline number "fluky" and pointed to the longer term trend.
Speaking of which, the longer term trend seems to be down. "Fluky" might pertain to the 35 day government shutdown resulting in last month's revised tally of 311K. Averaging January and February yields 160K for each month. Thus confirming a downturn since at least August of 2018 and going back to February 2018. Confirming...
US Spending in the doldrums since October 2017, and plunging off a cliff in February 2019. Confirming...
US Restaurant Spending showed its usual Q4 "credit card" holidays spike. However, the chickens came home to roost in Q3 2018 with the largest quarterly decline since 1992 or 26 years. Said precipitous decline was not limited to full service eateries, as all establishments including fast food suffered the same fate - see literally the same graph for Full Service and Other Eating Places.
Moral of the story? Repeat and rinse....
Recommended reading:
Timing Is Everything?
Know Your Limitations?
Parting The Red Sea?
A Little Shop Of Horrors?
Where's Your Messiah?
Rapture?
Ro-BUST?
Beware The Ides Of Winter?
Meddling With Powers?
The Perfect Storm?
Begin The Benign?
A Case of Tape-r Worm?
Beware The Ides of Winter Early?
A Disturbing Lack of Faith?
Canary In A Coal Mine?
Free Trade Warning?
Global Economy Down?
Wear Sunscreen?
Trust Me On The Sunscreen?
Let Me Warn You?
Lunar New Year For Old Blind Men?
Shutdown Impacts Inflection?
LIBOR: Putting Out A Fire With Gasoline?
A Yen For Liquidity? Or No Yen For Carry?
Interest Rate Swaps: Putting Out A Fire With Gasoline?
Expectations: Putting Out A Fire With Gasoline?
Conundrums: Putting Out A Fire With Gasoline?
And The Band Played On?
If A Tree Falls?
Pay No Attention?
Rinse and Repeat?
Big Trouble in Little China?
Chinese Take Out?
The GM sitch in a nutshell: Sales, profits and market share all down. Fired 15K American workers after the American public bailed GM out for only $50 billion plus. Executives are counting on China and Mexico with a slowing Chinese economy. And now this...
February 27, 2019 Ford Motor Co’s joint venture in China has “quietly begun” dismissing thousands of its 20,000 workers due to weak auto sales in the world’s second-largest economy, ReutersMoving West... If one thinks these events are symptomatic of a one off or isolated, then that fool should stay inside of their little bubble and keep pretending.
Towards proving that point, in the first two months of 2019 China's industrial output grew at the slowest pace of expansion in 17 years. Confirming... Japanese exports fell for a third straight month in February. Exports fell 1.2% Y/Y, following a sharp 8.4% Y/Y decrease in January.
A picture is worth a thousand words? We showed our readers three graphs related to China in Big Trouble in Little China? How bout five more covering the EU and US? Buckle up...
Speaking of which, the longer term trend seems to be down. "Fluky" might pertain to the 35 day government shutdown resulting in last month's revised tally of 311K. Averaging January and February yields 160K for each month. Thus confirming a downturn since at least August of 2018 and going back to February 2018. Confirming...
Moral of the story? Repeat and rinse....
Technically and paradoxically, there is no such thing as the "wage-price spiral"; the "price-wage spiral"; or the "cost-push spiral", in the sense that increases in wages, prices, or costs are causes of inflation.
Unless effective demands (money times its velocity) are adequate to prevent a cutback in sales, or a diversion of purchasing power to the price raisers, any administered increase in prices will result in less sales, smaller outputs, less employment, lower payrolls and less demand for products—in other words, depression and deflation in due course. It’s about consumer’s market basket substitution, the elasticity of demand. - Salmo Trutta - Global Economy Down?Rinse and repeat... much like Chomsky and Goldsmith's prescient warnings in Free Trade Warning?, Trutta's does not fall on deaf ears, at least in these parts or where the rubber meets the road.
Recommended reading:
Timing Is Everything?
Know Your Limitations?
Parting The Red Sea?
A Little Shop Of Horrors?
Where's Your Messiah?
Rapture?
Ro-BUST?
Beware The Ides Of Winter?
Meddling With Powers?
The Perfect Storm?
Begin The Benign?
A Case of Tape-r Worm?
Beware The Ides of Winter Early?
A Disturbing Lack of Faith?
Canary In A Coal Mine?
Free Trade Warning?
Global Economy Down?
Wear Sunscreen?
Trust Me On The Sunscreen?
Let Me Warn You?
Lunar New Year For Old Blind Men?
Shutdown Impacts Inflection?
LIBOR: Putting Out A Fire With Gasoline?
A Yen For Liquidity? Or No Yen For Carry?
Interest Rate Swaps: Putting Out A Fire With Gasoline?
Expectations: Putting Out A Fire With Gasoline?
Conundrums: Putting Out A Fire With Gasoline?
And The Band Played On?
If A Tree Falls?
Pay No Attention?
Rinse and Repeat?
Big Trouble in Little China?
Chinese Take Out?
Comments