I just saw a chart on Bloomberg TV that I have more or less duplicated on FRED. It shows the very tight relationship between US manufacturing jobs and the level of the trade weighted dollar. Common sense tells us that the strong dollar should lead to fewer manufacturing jobs and a weak dollar to more. What surprised me is how short is the lead time from the point when the dollar strengthens and jobs are lost, or how quickly a weak dollar leads to more jobs.
I guess this means that we should expect a big drop in manufacturing jobs in the coming months. The break in the link with the renminbi will make this even worse.
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