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Now I have no doubt that Europen exports to the US are less price sensitive than those from China, but if the Chinese put their money into Euros, that puts European exports at a serious price disadvantage.

Detailed American imports from the EU show that several fields are probably not going to be able to absorb a big price increase.  Automoviles?  Machined pieces?

And the EU exports $332.1 Billion annually to the US.  Where do those exports go to if the US can't but them?

And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg

by ManfromMiddletown (manfrommiddletown at lycos dot com) on Wed Aug 8th, 2007 at 06:21:42 PM EST
[ Parent ]
$330bn is 2% of EU GDP. Big chunks are not price sensitive. It'll be swallowed easily.

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Wed Aug 8th, 2007 at 07:07:08 PM EST
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