Jobless Claims

Economists and News Agencies are downplaying the most important number in the new Jobless Claims data. This is the fact that Continued Claims jumped by over 140,000 to total 2.84 million. It is the highest since July, and shows a definite sign reversal of trend; itself not a worrisome datum, except for the increase in American Imports. It means the Recovery may be returning to a Slump.

Economists also downplay the decline in Aircraft Sales. The key element here lies in the fact that Aircraft remains one of Our few competitive American Exports. Aircraft are indead volitile and somewhat budgetary seasonal, but a major component of American Export credits. Readers should keep this in mind for evaluation purposes in contemplation of the fact Airbus (European) continues to improve its Support services while remaining financally competitive with Boeing. The Latter's craft design stays marginally better, but not financially better in the face of Support service declines.

The real cause for concern in the American marketing picture comes from the reality that Imported Materials necessary for Production are increasing in Price far faster than are the Prices for Imported Finished Goods. This destroys the advantage of a weakening Dollar in the Sale of American Exports, because American Export Prices of Finished Goods must increase in Price faster than Foreign Product Prices. This results from the vast supply of American Dollars held Overseas, due to the Debt-funding of the Federal Government. The major restraint of American Sales Overseas is not a strong Dollar, but a Spendthrift Federal Government. lgl