Let’s just simplify this conversation, shall we? Was there an EU country that didn’t contract last quarter?
I’m seeing France, Spain, Ireland, and even Germany experiencing “significant” drawdowns in their manufacturing bases. This builds on top of continuous, quarter-over-quarter drops across the entire continent.
On top of that, I’m seeing retail sales misses in Canada, Brazilian unemployment shot back up, and China is spiraling the toilette bowl. I’m hearing talk of turmoil in India. All of these countries happen to be huge trade partners with the EU.
So what’s not going on an idiot run lower? Well, the U.S. seems to be doing alright. But the U.S. is not exactly what I’d call a “global growth” story.
So the big question for those of us here at home is: can the U.S. shake off any EU slowdown? At what point does having our trading partners self-immolating start to impact us negatively, as a country?
My guess, for months now, is that the EU would witness spectacular contraction, which would effectively negate any growth here in the U.S. We would go to 0 – “static”, if you will.
Will I be right? So far, it looks like the data is disagreeing with me. The U.S. does seem to be pushing ahead. Is this from the expansion of the North Dakota energy revolution? It very well may be the case that the U.S. is about to “Saudi Arabia” its way to self-reliance.
Sweet. You will not see me complain about that. If the U.S. is about to become a global “island continent” sheltering ourselves from the rest of the loons that occupy this planet, you won’t hear a peep from me.
But outside of the U.S., things are accelerating downward.
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