Global Economies Plummet

Wow, some amazing numbers out of America’s biggest trading partners: Mexico fell 21.5%, Japan reported its economy contracted 15.2% (annualized) in Q1, while Germany’s Q1 fell at an annualized 14.4%. Most of this data is the worst since 1970.

And, its not too hard to guess why, according tot he front page of the WSJ:

“All three countries depend on exports to the U.S. But they have nose-dived as U.S. consumers cut back purchases of autos, electronics and other goods mass produced abroad. For the first three months of 2009, U.S. merchandise imports declined about 30% to $352.5 billion compared with the same period a year earlier. Mexico’s ties to the U.S. are particularly strong because of the North American Free Trade Agreement, and Mexican auto production in the first quarter fell 41% from the year before.”

Not quite green shoots . . .

Originally published at The Big Picture and reproduced here with the author’s permission.

3 Responses to "Global Economies Plummet"

  1. Guest   May 22, 2009 at 7:37 pm

    And it’s only beginning. Deflation will destroy the United States. It will be followed by a collapse of the supply chain and then inflation a la Austria 1919. Regime change anyone? Guess not until everyone is starving. Could have been avoided.John Ryskamp

  2. Anonymous   May 24, 2009 at 6:56 pm

    With due respect, Mr. Ryskamp, it could not have been avoided. Greenspan tried, in a very tentative way, to point out that greed was running wild and unchecked (“irrational exhuberance”) and was raked over the coals.The sad facts are that people are too greedy to work together to the extent required, too ignorant about economics to do anything useful even if they were willing (nobody really knows how to handle globalization and rapid technological advance), and too chained to their impulses and religions to seriously implement population control (the last guy who tried was named Adolf and he paid a rather high price for his efforts).

  3. wendy   May 26, 2009 at 9:02 am

    Every baby has his toy.every little children has his dollevery day we need foodeverybody has his job to obtain the life what he wanted .so everyting has connexted to money .pepeople are too greedy to the money to tanin hinself and persuit good material .they want to buy anything just they wanted .one word :unsatisfied