Japan doing the heavy lifting?!

Japan November current account surplus shrinks 65.9%

(MarketWatch) -- Japan's current account surplus shrank as much as 65.9% in November from the year-ago period because of a sharp fall in the country's exports, official data showed Tuesday. Current account surplus fell to 581.2 billion yen ($6.46 billion) from 1.71 trillion yen in November 2007. Monthly trade balance was a negative 93.4 billion yen, as exports shrank 26.5% amid tough global economic conditions, compared with a 13.7% decline in imports.

U.S. Economy: Trade Deficit Narrows Most in 12 Years

(Bloomberg) -- The U.S. trade deficit narrowed in November by the most in 12 years as tumbling oil prices and slumping consumer spending cut imports.

The gap shrank 29 percent, more than forecast, to $40.4 billion, the Commerce Department said today in Washington. A record 12 percent drop in imports propelled the improvement. Exports fell for a fourth straight month.

My Comments: This is not good news. One of the weakest link in the global economy has been called upon to do the heavy lifting. This data implies another leg down for the global economy.

Thankfully, one big countervailing force will be the huge public dis-saving unveiled by Obama. This should help the world as the U.S. consumer rebuilds savings.