Cliff notes.. Food will cost more. Poorer people will pay a higher % of their income for food. That leaves less money for Walmart's none food items. Mostly made in China/Asia( less workers needed, so those workers buy less). That makes China need less raw materials from Australia (less workers needed in that industry). It means less Caterpillar orders in the U.S (means less Caterpillar workers).
I use this as a template. Caterpillar isn't the only place that makes heavy machinery. Europe has Volvo, and Japan has Komatsu. You can check those if you like. Walmart isn't the only one either. Its just a generic pulse. Use you brain to find others if you need more evidence. Copper and oil speak for themselves. Oil isn't the best indicator now because of Russia. But when added with copper. It is a good signal on the world economic health. Copper plus heavy machinery is better than copper alone. Heavy machinery stocks are forward looking. Because of purchase orders (the future). All U.S. recessions since 1970 started with a spike in oil. Oil is in every fiber of the economy. We just had/still in a oil spike.
The thing is. The U.S. unlike since 1970/2008 is a net exporter of oil now. So the U.S. will come out of recession faster, and do better. Than China, Japan and Europe.
I use this as a template. Caterpillar isn't the only place that makes heavy machinery. Europe has Volvo, and Japan has Komatsu. You can check those if you like. Walmart isn't the only one either. Its just a generic pulse. Use you brain to find others if you need more evidence. Copper and oil speak for themselves. Oil isn't the best indicator now because of Russia. But when added with copper. It is a good signal on the world economic health. Copper plus heavy machinery is better than copper alone. Heavy machinery stocks are forward looking. Because of purchase orders (the future). All U.S. recessions since 1970 started with a spike in oil. Oil is in every fiber of the economy. We just had/still in a oil spike.
The thing is. The U.S. unlike since 1970/2008 is a net exporter of oil now. So the U.S. will come out of recession faster, and do better. Than China, Japan and Europe.
those who can, do. those who cant, talk about those who can
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