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

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

3 comments:

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.

http://research.stlouisfed.org/fred2/graph/?g=sHf

shf indeed!; March 4, 2014 at 10:16 AM
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?; March 4, 2014 at 4:31 PM
Stagflationary Mark said...: AllanF (& Troy),

Export, to whom?

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

Ba dum tssshhh

Sigh.; March 4, 2014 at 11:22 PM

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