AuthorTopic: US trade figures imply 2015/Q1 GDP negative  (Read 586 times)

Offline Palloy

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US trade figures imply 2015/Q1 GDP negative
« on: May 05, 2015, 08:51:29 PM »
So with interest rates at zero for 7 years, and $4 trillion of stimulus now finished for 9 months, share buybacks at record levels, and the US economy enters recession.  QE4 coming up.

http://www.zerohedge.com/news/2015-05-05/us-trade-deficit-soars-worst-financial-crisis-will-push-q1-gdp-negative
US Trade Deficit Soars To Worst Since Financial Crisis; Will Push Q1 GDP Negative
Tyler Durden
5/05/2015

After shrinking notably in Feb, March's US Trade deficit exploded. Against expectations of a $41.7bn deficit, the US generated a $51.4bn deficit - the worst since Oct 2008 and the biggest miss on record. Exports rose just $1.6bn while imports soared $17.1bn with the goods deficit with China soaring from $27.3bn to $37.8bn in March.

Ironically, just as the "harsh winter" was found to lead to a GDP boost due to a surge in utility spending, so the West Coast port strike which was blamed for the GDP drop, was actually benefiting the US economy as it lead to a plunge in imports. In March, however, the pipeline was cleared, and US imports from China soared by over $10 billion to $38 billion.  End result: prepare for upcoming Q1 GDP downgrades into negative territory, which with a Q2 GDP of 0.8% (per the Atlanta Fed) means the US is this close form a technical recession.

Worst trade deficit since Lehman.


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Offline RE

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Re: US trade figures imply 2015/Q1 GDP negative
« Reply #1 on: May 05, 2015, 09:13:43 PM »
So with interest rates at zero for 7 years, and $4 trillion of stimulus now finished for 9 months, share buybacks at record levels, and the US economy enters recession.  QE4 coming up.

More Funny Money will solve the problem, no doubt.  ::)

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