‘Made in USA’ Replaced With ‘Anywhere But’
CIGA Eric

Acceleration in the import to export ratio reflects not only the wide-spread replacement of “Made in USA” with “Anywhere But” labels but also America’s ability to borrow and consume. Private consumption which accounts for more than 70% of GDP has become the key economic driver for the United States. Unfortunately, American’s ability to consume has been grinding sideways since 2009. The yellow box illustrates yet another sideways, grinding-style setup. There’s one big exception though. A sovereign debt crisis accompanies this one. This suggests that the secular trend, largely up since 1945, could dramatically change as global economy is rebalanced by market forces.

Imports to Exports Ratio (Census Basis)

Headline: US trade deficit widens in June to $53.1 billion

American producers sold fewer industrial engines, electric generators and farm products to the rest of the world in June, pushing the trade deficit to the highest level since 2008 and dealing another blow to an already struggling economy.

The deficit rose 4.4 percent to $53.1 billion in June, the largest imbalance since October 2008, the Commerce Department reported Thursday. Imports fell 0.8 percent to $223.9 billion as crude oil prices fell for the first time in nine months. Exports dropped 2.3 percent to $170.9 billion, the biggest decline in more than two years.

The drop in exports, the second in a row, was a blow to hopes that rising overseas demand will boost the fortunes of American manufacturers in the face of a slump in spending by U.S. consumers. The concern now is that a global slowdown will hobble a U.S. economy that is in danger of stalling out.

Source: finance.yahoo.com ^[1]

More… ^[2]