slowly realize that a falling EURO hurts China more than we think...
and that is NOT good news..., for U.S.
This is the best pictorial/explanation we have seen for why we have not seen, yet, a decline in Chinese exports to Europe following the steep drop in the value of the EURO. It takes 3-6 months for the drop in deliveries..., to follow the drop in orders..., following the drop in funds - lending - to support it.
What that is showing U.S. is that what we are now seeing in shipments is NOT what we will be seeing over the next few months.
China is in trouble. Bcuz, the EURO is in trouble.
This is not good.
If we DO see a precipitous fall in European imports from China
there will be another steep decline in Chinese jobs & income.
They will NOT sit, quietly, by and let that happen.
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A slow Europe could still lead to a slow China
FORTUNE -- If we have learned anything in the last few years, it's that all major markets are connected.
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