Chinese exports, which were growing 10% faster than world trade in 2002, are now growing nearly 20% faster, according to Charles Dumas of Lombard Street Research. Asian surpluses contribute to the US deficit “problem.” The dollar-yuan currency contains the undervalued yuan as well as the overvalued greenback.
Chinese and World Exports (12 month MA, Y/Y)
Source: Lombard Street Research
Dumas believes China is slowing, and will likely to suffer a hard landing. Rapid export growth – even unfairly rapid export growth – will be welcome in 2005.
Quote of the Day:
“To me, the ‘Tape’ is the final arbiter of any investment decision. I have a cardinal rule: Never fight the tape!” - Martin Zweig
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.