"Following the Fed's somewhat downbeat perspective on growth, confidence in
investors' minds that the US can decouple has been temporarily jilted back to
reality. It is of course no surprise and as the World
Bank points out half of the world's approximately $15 trillion trade
in goods and services involves Europe. So the next time some talking
head uses the word decoupling (ignoring 8.5 sigma Dallas Fed prints for
the statistical folly that they are), perhaps pointing them to the facts of
explicit (US-Europe) and implicit (Europe-Asia-US) trade flow impact of a
deepening European recession/depression will reign in their exuberance.
From The World Bank: Golden Growth
An increasingly vigorous flow of goods, services, and finance over the last five decades has fueled European growth. Europe’s economies are the most open in the world. Before the global crisis of 2008–09, half of the world’s approximately $15 trillion trade in goods and services involved Europe (figure 2). Two-thirds of it was among the 45 countries discussed in this report. Financial flows have been equally vigorous. In 2007, for example, annual FDI in Europe exceeded $1 trillion. Big and growing trade and financial links facilitated by the single market form the core of the European convergence machine."
at http://www.zerohedge.com/news/europe-goes-deep-recession-so-does-half-worlds-trade
From The World Bank: Golden Growth
An increasingly vigorous flow of goods, services, and finance over the last five decades has fueled European growth. Europe’s economies are the most open in the world. Before the global crisis of 2008–09, half of the world’s approximately $15 trillion trade in goods and services involved Europe (figure 2). Two-thirds of it was among the 45 countries discussed in this report. Financial flows have been equally vigorous. In 2007, for example, annual FDI in Europe exceeded $1 trillion. Big and growing trade and financial links facilitated by the single market form the core of the European convergence machine."
at http://www.zerohedge.com/news/europe-goes-deep-recession-so-does-half-worlds-trade
