Declining Hegemony. But still Hegemony.
Not a sign of strength, but of big economic distortions.
But the downturn in the goods-based sectors started in 2018. US exports are now down 37% from that peak, imports down 25%.
Everyone is trying to figure out how to get around the sudden hurdles.
This will become an often-played tune over the next few months, delineating how dependent Corporate America has become on China.
Is this the black-swan event people have been predicting for years?
Corporate America rerouted its supply chain to other countries.
GM shifts even more production to Mexico (even as its US sales fall). But Ford’s imports from Mexico plunge. FCA’s, Audi’s, Nissan’s down too.
An ugly report. How will it impact the overall economy?
Latest data is out. Folks who hoped the Renminbi would break the dollar hegemony have to be very patient.