Democracy for Vancouver

And without much of that home equity liquidity extant in the consumer hive that is the U.S., liquidity and manufacturing are drying up worldwide while inflation rides high on record oil prices. Haven’t we seen this movie before?

From our international banker this morning:

The US Institute for Supply Management said its index of factory activity [our PMI] fell as expected to 48.3 in February, the weakest since April 2003, from 50.7 in January; a reading under 50 indicates contraction.

US January construction spending fell 1.7% m/m, primarily due to the drop-off in home construction.

Canada had negative economic growth of 0.7% in December… Exports fell 2.2% in Q4, the first drop in six quarters; blame extended shut downs by auto makers… Goods producing industries shrank by 0.9%.
…
The CLSA China manufacturing PMI dipped to 52.8 in February from 53.2… [w]ith inflation at 7.1%.

India’s manufacturing PMI fell to a five-month low of 59.5 from 60.7… Inflation rose to 4.89%, an eight-month high.

…Markets anticipate that the European Central Bank will cut its economic growth forecast for the Eurozone to 1.8% this year from 2.7% in 2007.

Manufacturing in Spain is contracting and it is stagnant in Italy… Unemployment is rising in Spain faster then anywhere else in Europe. Spanish economic growth is seen by some as slowing to 2.0% this year and 1% in 2009 from 3.8% in 2007.

Isn’t it great to have an MBA in the White House?