Posted on 04/29/2022 4:46:33 AM PDT by FarCenter
A leap in America’s trade deficit during the first quarter pushed US GDP down at a 1.4% annual rate, the Commerce Department reported April 28. The consensus forecast called for 1% growth. A massive increase in US imports knocked 3.2% off annualized GDP, reflecting America’s growing dependence on China.
There is no historic precedent for a big economy living on imports from its declared strategic rival. America’s trade deficit in goods soared to $125 billion in March, or a record $1.5 trillion annual rate. America buys goods from the rest of the world and sells paper in return. As of yearend 2021 the US net foreign investment position stood at negative $18 trillion, roughly equal to its cumulative trade deficit over the past thirty years.
China’s exports to the US in March reached a seasonally-adjusted annual rate of $675 billion. That’s an increase of about 60% from August 2019, when the Trump administration imposed tariffs on Chinese goods.
(Excerpt) Read more at asiatimes.com ...
The way this is going it can’t end well.
Wait until summer, when the next “supply shock hits.” -1% GDP will sound like “The Good Ole Days.”
Higher inflation means more lower cost imports.
Here is how it ends.....war with China over Taiwan. Maybe cold war bordering on hot.
Global economies collapse thanks to all western central banks pumping trillions into the economy.
In the midst of the collapse and China being declared an enemy more dangerous than Russia, the Great Reset is proposed where governments stop corporations from manufacturing in China and where things will be made at home (US/EU)
The people will cheer and hate on those greedy capitalists who moved our manufacturing to China while celebrating our brilliant elected officials for defending workers at home.
That is how it ends.
US Dollar ⬆️
There’s an easy and obvious way to fix this...
China IS ournumber one foriegn enemy, they killed 1 million Americans.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.