I do believe last summer that Asiabizblog predicted a steep drop in trade coming shortly. Well, here it is.
Beijing announced yesterday that its November exports dropped 2.2 percent after a 19.2 percent surge in October. Imports took an even steeper drop, falling 17.9 percent. Analysts now say growth there is slowing to its lowest level since 1990, curbing Chinese demand.
Surprising that few Americans are calling for protectionist policies to curb imports -- especially given the incoming Democratic administration, which wishes to be perceived as the party of the American worker (whatever that may now mean).
"Global trade is reversing course because it is a function of industrial production, and we're seeing the biggest coordinated slump in industrial production since the early 1930s," said Philip Suttle, director of Global Macro Analysis at the Institute of International Finance. "In the old days, you'd get weakness in one part of the world, and it would take three to six months to impact another part. But now, everybody is so interconnected through trade that the impact is happening instantaneously."
The executive bailout has been implemented; the worker's bailout to follow? Will we see an increased call for protection, from foreign imports as American unemployment surges? Looks like this may get bloody, soon..
