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Global Trade in Trouble?
By Jon Menaster | September 25, 2008
Yes, it has been a while.. I am now in grad school, busy with a million and one things, but I will try and keep posting. Here’s something that caught my eye: Japanese exports to US tumble by 22%
In the article, the always informative Financial Times explains:
Japan’s trade balance occasionally slips into negative territory at the start of the year as production slows over its long new year holiday. But economists said August’s deficit was the first outside the month of January in 26 years, and the first on a seasonally adjusted basis since 1980.
The contraction was led by plunging sales of Japanese cars and trucks in a weak US automobile market. Exports to Europe also declined while growth in shipments to China and other Asian countries – including sales of Japanese factory equipment used in those countries’ own export industries – slowed sharply.
Why might this be happening? Well, beyond the fact that most Americans are cutting back on purchases in general, it is also much more difficult to obtain loans and other forms of credit now for purchasing these expensive vehicles. Either way, this is not good for Japan and a scene which is likely to start being repeated worldwide. As much as most people don’t like the United States, they do rely on us for our excessive consumption!
Topics: Trade |