Monday, March 3, 2014

Export Growth: What's the Worst That Could Happen?

The following chart shows the annual change in our exports of goods and services.

Click to enlarge.

Source Data:
St. Louis Fed: Custom Chart


Troy said...

QE -> more competitive dollar -> more exports (yeay!)

more exports -> less output to consume domestically -> more inflation (yeay!)

Deflation with $40T of debt is the road to default.

shf indeed!

AllanF said...

Export to whom?

My fear, fwiw, is $40T is an unsolvable problem. All the poles are on the left-hand of the plane to borrow a really old engineering joke. So we're faced with deflation or hyperinflation, there is no in between. Conventional wisdom is that deflation can't happen. The Fed/TPTB won't allow it.

However, I've never seen everyone make the same bet and have it pay-out. There's no one left to pay it, which is back to the export solution. Export, to whom?

Stagflationary Mark said...

AllanF (& Troy),

Export, to whom?

To all the other countries desperate to export to us of course!

Ba dum tssshhh