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As Europe Goes (Deep In Recession), So Does Half The World's Trade

Tyler Durden's picture




 

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.

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Mon, 01/30/2012 - 11:57 | 2109681 ucsbcanuck
ucsbcanuck's picture

BDI at 702... is there a problem, Captain?

Mon, 01/30/2012 - 11:58 | 2109686 economics1996
economics1996's picture

Different day, same shit.

Mon, 01/30/2012 - 12:02 | 2109707 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Same shit, different day

About three million different ways

It's hard to love you and it's difficult to say

And how do you expect for me to let you come and stay

With that agenda?!

-The Pharcyde - Agenda

Mon, 01/30/2012 - 12:15 | 2109766 ozziindaus
ozziindaus's picture

 

 

 

The rise and fall, the last great empire

The sound of the whole world caught on fire

The ruthless struggle, the desperate gamble

The game that left the whole world in shambles

 

Grandmaster Flash.

Mon, 01/30/2012 - 12:23 | 2109793 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Funny how it will be the great MCs that got the last wise word in for music....

KRS-ONE interview with ALex Jones:

http://vimeo.com/3365109

Mon, 01/30/2012 - 13:12 | 2110038 economics1996
economics1996's picture

Nothing like conversing with the 85 IQ crowd.

Mon, 01/30/2012 - 13:30 | 2110106 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Nothing like conversing with the holier than thou crowd.

Mon, 01/30/2012 - 17:12 | 2110885 TheGameIsRigged
TheGameIsRigged's picture

Nothing like being out of touch with the reality of the world....and your small place in it.

Mon, 01/30/2012 - 13:17 | 2110062 ozziindaus
ozziindaus's picture

You're not kiddin. Here's more

The cheats, the lies, the alibis
And the foolish attempt to conquer the skies
Lost in space, and what is it worth, huh?
The president just forgot about Earth
Spending multi billions, and maybe even trillions
The cost of weapons ran into zillions
There’s gold in the street, and diamonds under feet
And the children in Africa don’t even eat

Mon, 01/30/2012 - 14:43 | 2110345 DoChenRollingBearing
DoChenRollingBearing's picture

"Old business" ozzii

Thanks for your comment on NTN vs. INA yesterday, how NTN is moppin' 'em up in N America re needle bearings.

I know more about the PERUVIAN than ours here...

Mon, 01/30/2012 - 15:24 | 2110460 ozziindaus
ozziindaus's picture

No probs man. NTN make a great bearing. Excellent seals (700 kPa peak), top rated grease (-55 to 155 deg C) and very cost effective. I've literally used 10's of millions of them and never a problem. I've also had a lot of experience with INA but recently a Diesel application in Europe started to see some major problems. Can't say any more. 

Mon, 01/30/2012 - 14:11 | 2110253 nyse
nyse's picture

People hate The Pharcyde around here, huh?  

Mon, 01/30/2012 - 12:14 | 2109760 mattu13048
mattu13048's picture

Armada Markets predicted that EURUSD will reach 1.0000 this year and probably lower as eurozone will collapse and cease to exist. Game over.

Mon, 01/30/2012 - 12:17 | 2109769 Cast Iron Skillet
Cast Iron Skillet's picture

they're wrong - the Bernank won't give up that easily!

Mon, 01/30/2012 - 12:40 | 2109853 Ghordius
Ghordius's picture

nice repeating of the current dogma from Armada Markets - only hilarious that you mention this in a post where the global trade of goods (as in goodies, like physical gold for the bugs) and services is shown in such an euro-centric view.

what shall I say? EURUSD at 1.0000 would solve a lot of problems - for the eurozone. which has all in all a debt to GDP ratio of 85%, a small trade surplus (including oil imports), a relatively small and declining budget deficit and a mixed economy with (gasp) some industrial base.

autarchy might be in the books for the US in some distant future, but the eurozone trades nevertheless - has to

a "collapse"? how? Greece breaking out? Germany breaking out? it never ceases to amaze me how much misunderstanding a currency union causes for people who are outside it... nobody wants out, even Iceland (yes, of banking fame - you would expect them to be a bit sceptical, eh?) is talking about getting in.

EURUSD has the component of USD in it, the IOUs that every central bank of the world (except the FED) has on it's asset side - in great quantities. think about it. we are not yet at the stage where the news word cloud is dominated by "FX reserves".

nah, 1.000 might come, but I expect 1.425 in a few months, first. good to be hedged either way, though.

Mon, 01/30/2012 - 13:35 | 2110126 francis_sawyer
francis_sawyer's picture

The "Euro" is the beta project for the NWO (in terms of the ultimate goal of a one world currency)... Whatever happens, they won't let it die that easy (especially in the context of a prominent political election cycle year combined with a numerological "mystical" year like 2012)...

If the Euro IS going to die, they need a Plan B... I have serious doubts as to whether there is a Plan B formulated yet...

Therefore... I highly doubt the "collapse" will happen just yet... 

Mon, 01/30/2012 - 14:49 | 2110359 NotApplicable
NotApplicable's picture

They've always got a Plan B, as it is timeless.

Break more shit to increase dependence.

As for Plan A, it's timeless as well.

Lie, cheat and steal.

Mon, 01/30/2012 - 11:59 | 2109690 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

With China?  No!

You know, it's just that their real estate collapsed 40% last week, and while that was happening, gold buying soared an equal amount.  Nothing to worry about over there, where they hide the data like all other fascist states.  Move along....

Mon, 01/30/2012 - 12:07 | 2109729 Dr. Engali
Dr. Engali's picture

You mean building empty cities won't lead to economic prosperity?

Mon, 01/30/2012 - 12:07 | 2109734 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

It might if the Japanese ever realize they are being radiated to death and should leave their island Nation stat.

Mon, 01/30/2012 - 12:17 | 2109771 moskov
moskov's picture

Don't know why you always compare Japan with China?

Japan is a island state. That's all.

Mon, 01/30/2012 - 12:25 | 2109803 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Huh what?  Japan is being radiated and if I was in that area I would leave pronto.  I am surprised they stay.  Maybe they will figure it out when they all have cancer.

Mon, 01/30/2012 - 12:33 | 2109841 moskov
moskov's picture

The funny part is that it was the US government muted the International backlash on Japanese government's handling on Fukushima. And they are still leaking radioactive water into the International Sea and IAEA is simply raising the alert bar in oder to calm the public from the hidden truth which is getting worse day by day.

So much hypocrisies going on from your socalled International Community

Mon, 01/30/2012 - 12:41 | 2109892 Dr. Engali
Dr. Engali's picture

The international community will remain silent as long as the cash flow keeps coming their way.

Mon, 01/30/2012 - 14:18 | 2110269 fourchan
fourchan's picture

china is fucked x 1,300,000,000

Mon, 01/30/2012 - 14:44 | 2110348 sushi
sushi's picture

The international community will remain silent until they finsih turning Iran's mountains into glass. Then they will suddenly "discover" the perilious amounts of radiation being put out by Fukushima and loudly call for Nippon to stop polluting the planet. And then the news will be over and the latest re-run of Survivor will start and nobody will pay never mind. Pass the dip.

Mon, 01/30/2012 - 12:23 | 2109795 LongBalls
LongBalls's picture

Those city's sure will help when the people start revolting. Once you promise a bunch of poor people free places to live the love of state comes roaring back!

Mon, 01/30/2012 - 12:01 | 2109702 redpill
redpill's picture

"Fifteen degrees down plane."

"Fifteen degrees down, aye!"

Mon, 01/30/2012 - 12:10 | 2109742 DeadFred
DeadFred's picture

And yet tomorrow is election day so the PPT will be out in force this afternoon and tonight. Don't short anything until after tomorrow morning's early sucker rally ends around 10AM.

Mon, 01/30/2012 - 12:11 | 2109747 Don Birnam
Don Birnam's picture

"You arrogant ass. You've killed us !"

http://www.wearysloth.com/Gallery/ActorsS/16041-9042.gif

Mon, 01/30/2012 - 12:21 | 2109787 Dr. No
Dr. No's picture

"Bernake acted stupidly"

Mon, 01/30/2012 - 12:40 | 2109887 Jumbotron
Jumbotron's picture

Shome things here don't react well to bazookas.

Mon, 01/30/2012 - 13:37 | 2110134 redpill
redpill's picture

Central Bankers don't take a dump, son, without a plan

Mon, 01/30/2012 - 14:31 | 2110316 Jumbotron
Jumbotron's picture

LOL....that's brilliant !!

Mon, 01/30/2012 - 12:56 | 2109962 midtowng
midtowng's picture

It's OK. I'm sure our world leaders would tell us if something was wrong. </snark>

Mon, 01/30/2012 - 11:57 | 2109683 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Europe is balls deep in depression, bitchez!

Mon, 01/30/2012 - 12:09 | 2109737 Dr. No
Dr. No's picture

Bad analogy.....

Mon, 01/30/2012 - 12:28 | 2109819 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Fine.  Depression is balls deep in Europe.

Mon, 01/30/2012 - 13:19 | 2110070 Dr. No
Dr. No's picture

What I was gettin' at is, typically when one is balls deep, a guy is pretty far from being depressed....

Mon, 01/30/2012 - 13:32 | 2110115 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Thus why I switched the analogy.

Mon, 01/30/2012 - 12:01 | 2109692 GeneMarchbanks
GeneMarchbanks's picture

We need to talk...

...it's about your 'growth' problems.

Mon, 01/30/2012 - 12:08 | 2109698 LawsofPhysics
LawsofPhysics's picture

In a fiat world eCONomy built on infinite growth with finite resources there is only one outcome that is dependable, when goods and services stop crossing boarders, troops will.  Same as it ever was.  Junk away morons.

Mon, 01/30/2012 - 14:48 | 2110358 Matt
Matt's picture

Bullish!

Soon time to go long AAC, Raytheon, Haliburton.

Mon, 01/30/2012 - 12:01 | 2109701 lolmao500
lolmao500's picture

OT : That cocksucker Santorum is saying that medical malpractices lawsuits should be capped at $250k...what a corporate shill.

http://www.washingtonpost.com/politics/santorum-pushed-to-limit-malpract...

Yeah I'm sure if let's say you have a tumor in your left leg and your doctor comes drunk and he ends up cutting your right leg, you'll do just fine with $250k right?

Or if your doctor fucks up and your kid end up brain damaged, I'm sure $250k will be enough uh?

Santorum is total scum, protecting his corporate friends like a good little whore.

Mon, 01/30/2012 - 12:04 | 2109716 Clueless Economist
Clueless Economist's picture

STFU moron.

Mon, 01/30/2012 - 12:20 | 2109781 lolmao500
lolmao500's picture

You are just jealous of my bunny ears.

Mon, 01/30/2012 - 12:05 | 2109719 JPM Hater001
JPM Hater001's picture

Actually he is right.  Compensatory damages should not be capped but punative damages should as the malpractice insurance covers it and that cost is passed on to us.  Either that or take malpractice off the table for punative but then doctors wouldnt work at all.

Mon, 01/30/2012 - 12:05 | 2109723 JPM Hater001
JPM Hater001's picture

Oh yeah, and STFU Moron.

Mon, 01/30/2012 - 12:10 | 2109744 LawsofPhysics
LawsofPhysics's picture

No worries, I have a gut feeling that moving forward any potential malpractice or personal injury cases are going to start being "settled out of court" the old fashion way.

Mon, 01/30/2012 - 12:05 | 2109722 Spastica Rex
Spastica Rex's picture

Yeah, who's looking out for the lawyers?

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