If Inflation, Why Not Christmas From Mexico?

Those particular two months are all over Chinese data – and not just the PMI sentiment figures shown above. November 2020 then March 2021. China’s rebound seems to have peaked way back when and then mired in a steady slowdown from a zenith way too low.

During those same months, the massive opportunity in American demand came up. Prices never more favorable (or rarely this good, especially for the last more than decade), Uncle Sam’s checks deposited in private consumer accounts as well as businesses, and the goods orders flowing to someone somewhere.

Which accounts for Mexico and thus all the others around the world looking almost exactly like this economy? Is it delta corona combined with supply chains stretched beyond limits by all these coronas? Yes, that’s a problem, several problems.

Those are, however, not the only problems nor are they Mexico’s biggest. On the contrary, insofar as macro is concerned – meaning this concerns everything and everyone – the issue remains a shortage of global economy and not just temporary shortages of certain supplies. The US goods sector may be booming, for now, but hardly anything else is.

Like the “unexpected” bad sales during the American Christmas of 2018, landmine and all, if there are real issues with the rest of this calendar year and beyond they have as much to do with that long-ago time period as they would this year’s several versions of “trade wars.”

Mexico’s obvious and obviously protracted struggles aren’t really about Mexico. While Jay looks toward taper, global factors again

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Disclosure: This material has been distributed for informational purposes only. It is the opinion of the author and should not be considered as investment advice or a recommendation of any ...

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