While we watch political trash talk in the USA
Doug Higgins sent a note on China from Nikkei Asian Review
Doug adds “The size of the layoffs—as well as their nature—may be quite significant. China has been economically stuttering—closing factories, slowing its export machine. Of course, the U.S. trade deficit continues. The Neoliberals and elites studiously ignore trade as a sign of anything important. Playing with interest rates will do nothing. Not much can be done as interest rates hover around zero and below (in some areas).”
Sandwichman in a reply states:
Apparently the story there is reduction of overcapacity that was built under stimulus program to get out of 2008 global slump. It’s “the old lady who swallowed a fly.” Swallowing one “remedy” after another to manage the ill effects of the previous remedy. Agreed, the interest rate panacea is worthless. The problem is something that “can’t happen” — general glut.
Meanwhile…(Sandwichman points to a CNBC report) and adds: Japanese exports tumbled at their steepest pace in seven years as a stronger yen weighed on international shipments.
Japan July exports drop 14 pct on-year; imports tumble 24.7 pct
CNBC.com staff | @CNBC
Wednesday, 17 Aug 2016 | 8:51 PM ET
We have a few portents of a downturn here too. This one and a few related charts particularly worry me. I haven’t had the time to give it enough thought, but I wouldn’t be shocked if the post Great Recession “expansion” is over.
A bit earlier in summer 2008 I had feelings of impending doom. The campaigns and media blithely downplayed even the TARP in Oct 2008, where the reporting slighted the democrat rebellion against bailing out wall st.
Is there a time bomb no one wants out to investigate? What is it: FIRE[bond (ZLB) and stock bubbling coincidentally] or natural disaster [there is too little demand for crude? I paid least for petrol since Katrina] or what? Will it take down main st?
Aside from all that it is almost too hot to sit outside in the dusk and smoke a decent cigar. Less than one cigar per week to keep the medics from lecturing me!
glut sounds about right. except for the people who are starving. or paying the banks more than the traffic will bear.
maybe there’s something wrong with the economic model. maybe the rational equation is the trade off between enough to eat and enough time to enjoy life.
The winds of change are in the air. Tell me someone who will really care. You cannot see the forest for the leaves causing great despair. Why do I bother pulling out my hair. Your vote for the same I cannot bear. So I stand and scream my pitch to you but realize that it is a hopeless thing to scare. So I will retreat my hopes and bliss for you as I realize there is nothing here I can say or do. Perhaps one day you will see the truth in things as they really are but cannot be changed by fools like you…The Great Fools Fable …
For those who want a more prescient view of those who capitalize on fear go see todays (8-21-16) TED.com. Will Potter has some good advise about the divide in the US today not being about red and blue or black and white. It is between all us and those who have power…