Data released today (Friday) shows that foreign demand for
long-term securities plunged to nearly zero, as shown on the graph
below.
The sharp drop in
this economic data is one of quite a few that have been surfacing over the past
several weeks (which I've written about on my
Blog) and may be forecasting much more weakness to come in the overall
economy during the upcoming weeks/months.
Industrial Production data also released today also shows this type of sharp drop,
as shown on the graph below. The overall trend is down and has been for several
years…this can't be blamed on the hurricane.
Weakening demand equals
weakening data…if the demand is not there, no amount of Central Bank money
printing is going to change economic data…simple math.
