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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ucsbcanuck's picture

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

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

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.

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:

economics1996's picture

Nothing like conversing with the 85 IQ crowd.

Mr Lennon Hendrix's picture

Nothing like conversing with the holier than thou crowd.

TheGameIsRigged's picture

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

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

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...

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. 

nyse's picture

People hate The Pharcyde around here, huh?  

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.

Cast Iron Skillet's picture

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

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.

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... 

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.

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....

Dr. Engali's picture

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

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.

moskov's picture

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

Japan is a island state. That's all.

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.

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

Dr. Engali's picture

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

fourchan's picture

china is fucked x 1,300,000,000

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.

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!

redpill's picture

"Fifteen degrees down plane."

"Fifteen degrees down, aye!"

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.

Dr. No's picture

"Bernake acted stupidly"

Jumbotron's picture

Shome things here don't react well to bazookas.

redpill's picture

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

Jumbotron's picture

LOL....that's brilliant !!

midtowng's picture

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

Mr Lennon Hendrix's picture

Europe is balls deep in depression, bitchez!

Mr Lennon Hendrix's picture

Fine.  Depression is balls deep in Europe.

Dr. No's picture

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

Mr Lennon Hendrix's picture

Thus why I switched the analogy.

GeneMarchbanks's picture

We need to talk...'s about your 'growth' problems.

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.

Matt's picture


Soon time to go long AAC, Raytheon, Haliburton.

lolmao500's picture

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

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.

lolmao500's picture

You are just jealous of my bunny ears.

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.

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.

Spastica Rex's picture

Yeah, who's looking out for the lawyers?