[georgia2006]

"""From the European point of view the high US-defict is indeed a problem""


You realize dont you that the USA would not have such a large trade deficit if 10% of Europe wasnt chronically unemployed and EuRo zone GDP growth wasnt perenially stuck at 1%

Frankly if the US consumer didnt spend so much money, the global economy would fall into a deep recession.

[Atlantic Bridge]

You realize dont you that the USA would not have such a large trade deficit if 10% of Europe wasnt chronically unemployed and EuRo zone GDP growth wasnt perenially stuck at 1% Frankly if the US consumer didnt spend so much money, the global economy would fall into a deep recession.

As a European I have to say that America doesn't spent too much money in Europe or Japan but in China and the middle East. In difference to the Chinese we Europeans sell mainly productive goods like machines. This is something America is earning money with (if we exclude some of our luxury toys like Porsches or Ferraris). The cheap consumption crap that you buy in China in combination with your exaggerated energy usage is your real problem. Growth is wonderful as long as it is not based totally on debts.

The relativly high unemployment in Europe does not threaten your exports over here since your products are anyway only bought by consumers of the upper/middle class that are employed and earn a good living. Unemployment in Europe is mainly a problem for those people who worked in the low paid sector before they lost their job. The problem is rather that many American goods do not fit into European markets (i.e. most your cars are not interesting over here due to their high fuel consumption. Gas is much more expensive in Europe. Models with lower consumption sell quite good - i.e. the recent Chrysler models). Furthermore much of your industy is selling millitary goods we do not need in Europe since there is no political will to buy them in the moment or we produce them by ourselves already. There are some branches were US-firms are very sucessfull i.e. the IT-industry, but this is for sure not enough to counter the growing trade gap.

I am afraid that the deep recession will come when China wants to buy something back for its greenbacks. They already have huge mountains of it. To print simply more money will not solve your problem in the long run. Therefore such BS like political protectionism endangeres the world economy. Of course I understand your need for security. But will it be impossible to provide security if those ports are owned by some people from Dubai??!