Mon 11.7.11

Sorry, the comment is a little late. Kevin once again focuses on the one economic statistic that everyone should focus on....in the US 2/3 or 66% of our economic activity is based on consumer spending. This is unlike any other country in the world. This slide illustrates that the US's GDP is based on consumer spending considerably more than on exports. Look at the next to last on the bottom left hand slide, you see Hong Kong / China which rely almost entirely on exports for their GDP. This is why China doesn't want to reset the yuan, yet, b/c although they are growing at a rapid pace, they still are a younger economic country that relies on a cheap currency to export goods. If the US would focus on strengthening the dollar, we would see a tangible decline in commodity prices, including food and oil/gas (even with China's appetite for these items). If the price of commodities decline, then consumers will have more $ in their pockets and presumably will go out and spend it on other items.....resulting in higher economic growth and ultimately jobs


Source: Wolfe Trahan