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Global Stagnation And The US Dollar (Hurting US Exports)

This is a syndicated repost published with the permission of Confounded Interest - Online Course Notes For Financial Markets. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

The global economy is slowing, led by China. Europe isn’t doing very well nor is Japan.

gdpglobal

All of the global misery is leading to a strong dollar … and lower US exports.

Here is a chart of US exports versus the USDCNY, USDEUR and USDUJPY crosses. US exports are shrinking in the face of the strong dollar.

dollarexports

If we look at US Export Price By End Use All Commodities YoY, we can see an even more dramatic downturn.

exportsva

The strong dollar is perceived by companies as having a negative impact on Q3 earnings.

20151016_USD1

How long will the US dollar remain strong, particularly when the US economy is underwhelming with growing public debt outstanding?

usdebydd

And chronically lower consumer purchasing power of the dollar since The Federal Reserve was created in December 1913?

ppdollar

At what point does the dollar cross the line?

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