exports

Here Comes China with Dr. Doom Right Behind

While Dr. Doom (Roubini) warns of a double dip recession, an interesting New York Times article also appears, Asia’s Recovery Highlights China’s Ascendance.

In past global slowdowns, the United States invariably led the way out, followed by Europe and the rest of the world. But for the first time, the catalyst is coming from China and the rest of Asia, where resurgent economies are helping the still-shaky West recover from the deepest recession since World War II.

While Roubini warns on oil price increases breaking any potential recovery, we note China's robust growth is causing oil prices to rise.

Anyone recall China's Quest for Oil quoting deal after loan after acquisition?

Japan's Annual GDP - 12.7% Contraction

Japan's Economy Shrinks by 12.7% is reported by Bloomberg.

Japans exports in one quarter dropped 13.9%. Their quarterly GDP was 3.3% contraction and exports accounted for 3% of that drop.

Japan’s economy shrank at an annual 12.7 percent pace last quarter, the most since the 1974 oil shock, as recessions in the U.S. and Europe triggered a record drop in exports.

Year-over-year Deflation is here

November import and export prices have been reported by the Bureau of Labor Statistics, and they reflect firmly implanted deflation. Monthly prices for imports declined (-6.8%), as did export prices (-3.2%). Even leaving aside Oil, monthly import prices declined (-1.8%) .

Even year over year comparisons now show deflation:
- all imports (- 4.4%)
- all exports (- 0.2%)

GDP Exceeds Estimates - But Wait, Some Economists calling it the Last Hurrah

Just when you think the respite is upon us, the U.S. Chamber of Commerce says:

Today's GDP report is kind of the last hurrah for the U.S. economy, said at a press conference today. ``We've begun the process of slipping into a good old-fashioned recession -- Martin Regalia, chief economist for the U.S. Chamber of Commerce

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