Trade losses worsened in 2011:
Even with the weak economy, total trade losses worsened by -11.6% in 2011 to -$558 billion as export growth was again more than offset by rising payments for imports. The auto sector deficit rose to -$117 billion and now totals -$1.44 Trillion since 2000. The Advanced Technology Products deficit worsened to a record -$99.3 billion, exceeding the entire net foreign IP earnings of "US" firms by over -$15 billion. Goods trade losses are again over -$2 billion per day as the steady erosion of US productive capacity continues..

At last; a great jobs report for January:
BLS report 243k new jobs in Jan, with the private sector adding jobs for the 23nd consecutive month and 2.2 million new jobs yr/yr. Manufacturing added 50k new jobs in January but most new private sector jobs remain lower-wage, non-supervisory and in industries that do not face import competition or easy offshoring. The private sector now has 223,000 more jobs than it had 12 years ago in what remains -- by far -- the weakest 12-yr growth since the 1930s.

Partial Dec rebound for incomes & saving:
"Average" real disposable income percapita rose by almost 0.3% in Dec after falling -0.1% in November but remains down -0.6% yr/yr and down -1.3% from four years ago when the downturn officially began. Total real spending fell -0.1% in December after rising 0.1% in Nov. Savings rates rebounded to 4.0% in Dec but are down from 5.2% one year ago. Sharply falling tax payments and soaring personal receipts from government have allowed total real income and spending to recover beyond their pre-recession levels 48 months ago, but now the turn to government austerity puts even slow growth again at risk...and assures worsening budget deficits.

Q4 GDP accelerates on inventory buildup:
GDP grew at a 2.8% rate in 2011-Q4 but the buildup of unsold inventories accounted for two-thirds of the gains. Reduced spending in state and local govts cut growth while the trade deficit also worsened slightly, slowing growth. Private fixed investment remains down from 1999 levels as the first 12 years of disinvestment since at least 1932 continues with further cuts to govt spending and investing, along with troubles in Europe put even the modest rebound at risk.

Home starts and permits down in Dec:
New private housing starts fell -4.1% in Dec after rising by 9.1% in November as the year-long housing improvement continues. New permits also fell very slightly in Dec but this was after two months of sharp gains. The industry's stabilization is key to keeping the economy edging forward. Houses under construction eased slightly in Dec after gains in the previous three months from historic lows.

Weekly real wage up 0.5% in December:
"Average" real weekly wages rebounded in Dec. rising 0.5% to end the year down just -0.3% yr/yr and down just -0.5% since January 2009. Most household budgets have been under severe pressures for 12 years preventing a normal recovery and risking another crippling economic downturn.

Consumer prices down -0.1% in Q4:
Falling gas prices in Dec. and throughout Q4 offset meager gains for food and other items to drive down total consumer prices by -0.1% in the last three months of 2011. "Core" prices rose but remain tame, as most industries lack pricing power and are cutting costs, often including jobs and wages as the recovery struggles.

Manufacturing output soared in December:
Manufacturing output jumped 0.9% in Dec. after falling -0.4% in Nov. Mfging output rose 3.7% yr/yr but is now up only 2.1% above its levels of Dec 2000 as recent years suffered the first 11-yr stagnation or decline in output since 1926-1937.

December Producer Prices fell:
Wholesale food and energy prices each plunged -0.8% in Dec driving the overall Producer Price Index down -0.1%. "Core" producer prices rose 0.3% in Dec. 0.1% in Nov. after being almost unchanged for the previous three months as most industry prices remained stable with little pricing power.

Weak retail spending in December:
Nominal retail sales rose just 0.1% in Dec and fell -0.2% when volatile vehicles are excluded. Retail spending weakened throughout Q4 after soaring in Sept as households spent down savings to pre-downturn levels with job and wage growth still anemic.

-$6.55 Trillion Current Account since 2000:
Even the weakened economic recovery faces US Current Account losses of -$110.3 billion in 2011-Q3 with losses in 2011 on track to equal the -$471 billion losses of 2010. Although US GDP growth was weaker than world growth every year since, just since the year 2000 US Current Account trade losses are now over -$6.55 Trillion during this time. These losses show the shortfall of production compared with demand from US consumers, businesses and governments. To pay for net imports requires the US to borrow or sell assets to China and other foreign interests, undermining US financial independence. Figures are closely guarded as to how much financial institutions take from this round-trip trade/debt finance. Fees and interest hurt those who pay them but are the life-blood of those receiving them.

Workers produce more in Q3 for less pay:
BLS reports that workers' real output per hour rose at a 2.3% rate in Q3 but their real compensation plunged at a -3.2% rate after falling at a -4.1% rate in Q2. Workers' output and compensation tracked closely until 1982, diverging throughout the 1980s and 1990s but separating sharply in the 21st C. as deregulated globalization lets money trump labor.

Durable orders slide again in October:
On plunging orders for private aircraft, the volatile nominal value of new orders for all durable goods slid -0.7% in Oct after falling -1.5% in Sept. Orders in 2011 remain less than in 2000, still the first 11-yr decline on record. Orders most watched to signal business spending plans, nondefense capital goods less aircraft, plunged -1.8% in Oct to near levels reached in May and only slightly higher than 11 years ago as the lost decade of investment and jobs continues with even the very slow recovery again threatened from at home and abroad.

Household wealth down -21.6% from peak:
The Federal Reserve reports that the nominal networth of all US households fell by another -$1.3 Trillion in '09-Q1 and plunged -$13.9 Trillion, -21.6%, since peaking in '07-Q2. Total networth is now down -4.5% over the past 4 years. These are by far the worst losses of household wealth on records to 1952 and likely since the early 1930s. Don't believe the "de-leveraging" hype; ratios of debts-to-assets and debts to networth worsened in Q1 as homeowner equity fell to another record of just 41.4% of property values. Homeowner held over 70% of their home's equity in the 1981-'82 downturn.

Selling-off strategic US assets worldwide:
The Commerce Dept. reports annual foreign direct investment (FDI) to form new business in the US in 2008 fell to just 6.7% of the total while FDI to acquire the worldwide assets of existing US firms rose to 93.3%. Since 1992, 90% of $2.2 Trillion in FDI has gone to acquire existing US assets worldwide. This represents the recycling of a portion of the US' current account deficit payments.

Home prices plunge, time on market soars:
New single-family home sales remained near post WWII lows in April even as average prices plunged a record -19.2% yr/yr and median time on the market soared to 10.9 months, another record. This suggests that existing home values will continue falling putting many more homes underwater and adding financial pressures to households already facing record debt levels and an awful jobs market.

Debt-service pmts. stay near record:
Even with their large fees, the largely unregulated financial "innovation" of subprime and payday lenders have not set introductory rates low enough to reduce debt service far below record levels of Q2 disposable incomes. With record debt levels rising and recent exotic "adjustable" rates beginning to convert, this burden will worsen quickly, further slowing other spending.

The 2001 Recession
The recession that started in March, 2001 following 10 years of only average economic growth, officially ended in November, 2001. By most measures of output, investment and job creation, the current cyclical "recovery" is the weakest on record.