… by Press TV, Tehran

[ Editor’s Note: The Trump regime has been doing a dance to avoid using the “R-word”, but that has been like trying to push a string. Now the statistics are here – two quarters of domestic manufacturing declines. It’s called a RECESSION.

Overall, consumer spending is OK for now, and the White House mixed both together to cloud the manufacturing recession, five months of declines. There has also been no mention of Trump taking any responsibility for it via his sanctions on China and especially Huawei, who now cannot buy US-made chips.

And yes, the decline in US production is due to some of the trade war layoffs going on, which should increase. Trump is betting the farm that he is going to snag some big trade deal wins to save the day. But the IMF says the job gutting is a two-way street that threatens the world economy. Imagine that!

And so far many Americans have not figured out that the sanctions are paid by them, via higher prices on things from China, lost US jobs, and an ever growing threat of a major shooting war in the Mideast crashing the tight-wire financial act we have been walking.

Iran is hoping that, if it can hold its position in a year or so, there might be a new president in the middle of a Trump recession who would have a completely different attitude about how to go forward without playing Puff the Magic Dragon on steroids.

Even if Trump were to lose, we have to fear how much damage he can do before he goes. And if he does get another term, I suspect he will be even more aggressive, with he and the family grabbing all they can get their hands onJim W. Dean ]

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– First published … September 03, 2029

Bogged down in the US-China trade war, the US manufacturing sector stumbled and fell into contraction last month for the first time in three years, an industry survey showed Tuesday.

Anemic demand for US goods, with persistent drops in export orders, produced a “notable decrease” in business confidence, as indicators for production, employment and order backlogs all fell, according to the Institute for Supply Management.

ISM’s nationwide manufacturing index fell unexpectedly to 49.1, ending 35 months of expansion and hitting the lowest level since January of 2016. Economists had expected the index to hold about steady at 51.3. Any reading below 50 indicates contraction.

Timothy Fiore, chair of ISM’s manufacturing survey, told reporters it was difficult to say when the current decline could reverse. “I think the key here is for new demand to rise again and I can’t predict that,” he said.

Contractions in US manufacturing have not always preceded recessions in the wider economy but the latest ISM figures will no doubt raise fears of a downturn.

Fiore noted that, unlike prior manufacturing contractions, the index in this case had fallen for five straight months without interruption. “I think this is much more definitive,” he said.

The decline confirmed reporting from the US Federal Reserve according to which American manufacturing sector is now in recession after two straight quarters in the red.

The weaker-than-expected result will increase pressure on the central bank to cut interest rates later this month, as markets overwhelmingly expect it to do.

The news worsened a decline on Wall Street, with the benchmark Dow Jones Industrial Average down 1.4 percent near 1500 GMT.

Though President Donald Trump has championed the US manufacturing sector, it is now the weakest part of the American economy, suffering repeat shocks from the US-China trade war, which has raised prices and eaten into demand, and from a weakening global economy.

Ian Shepherdson of Pantheon Macroeconomics, which was not involved in producing the report, said the news was “grim.” “In short, we can find no good news here,” he said in a note to clients, noting that the survey did not point to a general downturn “yet.”

But “another couple of months of declines on this scale would leave the US facing an entirely unnecessary and self-inflicted recession,” he wrote.


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13 COMMENTS

  1. The color that comes to mind is red, and it’s not the color of China nor Russia, but the color of red shield bankers. Money printed from thin air and ownership, that is the imaginary part of reality is one thing, but too bad the real part of imaginary, that is patents and innovation to make impossible possible is connected to ownership.

    It was about 10 years ago, I bought used Italian car Fiat. That wasn’t really the deal of lifetime, soon I noticed that the radiator had leaked and engine overheated. Luckily I found a good shape working engine from local crapyard. There while replacing the engine, I noticed that the whole steering system of the car was made by American Company TRW. So I thought why not to replace the steering systems parts at the same time, not that expensive about 30e each part. But autoparts shop didn’t have them originals readily, so I bought their noname subtitutes.

    TRW parts easily make up to 200k km, but that crap I bought didn’t make to 20k. It’s not a question how cheap or expensive the labor is, but what is the quality of steel being used. How did they got those parts on market, unless they’ve been manufactured in massive scale, a copy of TRWs system, a shiny and very cheap car that doesn’t last too long. To make 3e per hour workers happy.

  2. From the Senior Editor:

    VT long ago recognized that when we start making progress against the monsters around us, their little turd boys and girls are sent to insert comments, usually with childish attacks on “the Jews.” Trying to reason with fake people, which is what John and to a lesser extent Ian is doing, is a waste of time.

    For the rest of you, engaging fake people a waste also. We seldom look at comments but instantly erasing our fake Zionist “jew haters” poison isn’t censorship.

    This isn’t a fucking democracy. If people want to start paying to read VT, like with the rags like the NYT and WP, then complain but wait, they censor all their comments. Grow the fuck up.

  3. Actually Trump’s only partially to blame for this exodus of US Manufacturers. It really started after WW II with the Brenton Woods Agreement and the Marshall Plan and accelerated under NAFTA and other Global Agreements which was that sucking sound you might have heard that Ross Perot warned us about.

    Anyway these agreements have actually caused more destruction to the US Manufacturing base than the constant bombing of Germany and Japan in WW II. Think about that.

  4. Wait a minute. So John Allen you’re saying that the majority of the #MSM is NOT Jewish controlled? You care to wager a bet on that statement?

  5. Now VT is MODERATING comments? It must be true what I read…VT is a jew outfit like all the other alt right sites!

    • ZombieGirl, we generally don’t allow BIGOTED comments like yours above. However, sometimes we leave it so we can reiterate and confirm our disposition for others to know and read. On your end, be critical of VT, that’s fine. But don’t makeup nonsense without evidence. That’s NOT fair to others and diminishes from the serious discourse VT expects from its readers. In short, get serious and bring your A-game. Make your case and contribute positively to the privilege of being on an independent media that is NOT MSM or controlled by some, as you say “Jewish Right Alt Wing” boogie man. Now bring it ZombieGirl

    • I deleted your comments because they were disgustingly racist. I checked and EVERY comment you had made here contained anti-Jewish hate speech, we do not tolerate racism, bigotry and hate speech. Any further instances of your bigotted bile will also be deleted, if you don’t like it, you are free to leave.

    • Zombie Girl, I’m guessing you’re being ridiculous. USA makes a ton of stuff just NOT to the level it once did back at it’s peak in the 20th century. The Trump Tax Cuts did stimulate incentive for businesses to re-invest and it caused manufacturing to rise a bit. But now, with no more room to cut and debt over $ 1 Trillion there is no more space to stimulate… thus most economists now predict recession (2 quarters of shrinking GDP). Will USA return to its peak in manufacturing? Most economists say no. The globalized world is now very different and the dynamics that made USA # 1 in manufacturing back in the day are simply NOT the same.

    • I think it’s also question, when do Chinese workers get enough for been payed 50 cents per hour, and that will happen. There are also differences between Europen and American ideologies on manufacturing. Europeans like to update their old factories to overtime, while Americans drive their factories full speed ending on less than life cycle of the factory. In American model investors should have built the most modern factories to replace the old ones, but instead they built them on China.

    • There is a way to stimulate the economy, but no one will go near it because it is politically tainted (i.e., implemented by the NSDAP in the 1930s). Sadly, people do not understand the principle of severability, and therefore paint everything done by certain actors in the same color.

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