THE BEST EVIDENCE YET THAT THE US ECONOMY IS IN RECESSION IS THE FALL IN THE TRADE DEFICIT...
EVERYONE KNOWS THAT THE US IS NOT AN "EXPORT" ECONOMY... WE IMPORT NEARLY ALL OF OUR "MANUFACTURED GOODS" FROM CHINA, ETAL...
SO THE DECLINE IN THE TRADE GAP IS DIRECTLY TIED TO THE FALL OFF OF THE AMERICAN CONSUMER... PROBABLY DUE TO HIGH GAS PRICES...WHICH ARE FINALLY STARTING TO BITE FOR REAL...!
THE TRADE DEFICIT DECLINE IS THE FIRST AND BEST SIGNAL THAT WE ARE NOW IN A FULL BLOWN RECESSION...
BUT LET'S SEE HOW THE STREET SPINS IT...
LIKELY THE STREET WILL SEE THE EXPORT INCREASE AS "POSITIVE" BECAUSE OF THE WEAKER DOLLAR...
BUT THE WEAK DOLLAR ONLY MEANS CHINA CAN BUY THEIR RAW MATERIAL FROM US...MAINLY, PULP PAPER AND SCRAP METALS...AT A HUGE DISCOUNT!!
THUS INCREASING THE PROFITS FOR CHINESE COMPANIES EXPORTING TO THE US...!
