Strong USD – US manufacturing stuffed

Without really giving financial advice – the U.S. has a huge problem.

What will be Congress reaction to this problem?

Ever shorted stocks?

The scenario being played out in America now – is one of reduced manufacturing exports and increased imports. When one looks at the underlying fundamentals all US manufacturing will come under severe stress through ‘cheaper’ imports.

Take the steel industry as a prime example – the strong USD allows for cheaper imports – with the collapse of commodity prices and lower shipping costs.

Look across the whole US manufacturing industry and all industries are in for a load of trouble.

Ever shorted stocks?

Word of caution though – the U.S. Government are protectionists – they have the worst record of applying tariffs to imported goods to save their own.

Yes from a country that is touted as the world leader in trade – they themselves are the biggest hypocrites.

Technically US consumer spending should increase as well – but all is not well in the land of the free – unemployment and underemployment is high – basically Calpers and other pension funds are insolvent – together with majority of States….

Yes world trade is going down the plug hole – but still opportunities to be made – problem is protectionism and knee jerk reaction of politicians.


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