“Turns out it’s a heck of a lot easier to create demand than it is to bring supply up to snuff”: Jerome Powell
Nothing Goes to Heck in a Straight line, not even the dollar’s hegemony.
The promise of high-value services exports to rationalize globalization turned out to be fake.
Imports of goods soared, while the already small services surplus plunged to nine-year low.
Biggest buyers: Mexico, South Korea, Japan, China, Spain, UK. Price spike in February, when Texas froze up, unwound. Asian LNG price spike in January is unwinding.
They’re not the same consumers.
The crucial services exports, manufacturing exports and imports, the arts & entertainment industry, fishing industry… it’s a mess.
But the Trade Fiasco with China was the least terrible since 2013.
Against expectations, the feared plunge in remittances, as during the US Housing Bust, did not occur. For interesting reasons. Weirdest Economy Ever.
Other options also shaky. Central banks leery of Chinese RMB, its share still irrelevant. Euro’s share is stuck. But the yen’s share has been rising.