So maybe we are connected?

At the beginning of the year there were many media outlets debating on whether the European and BRIC economies were immune from the US malaise. As much as some people wished there was no connection, some bits of information have started to trickle in showing otherwise. Two articles ran in the WSJ in the past week, buried deep inside the paper. One article covered Germany’s fall in new manufacturing orders. Germany one of the main components of economic growth in the EU experienced its 7^th straight month decline for new orders. It’s still very early, but it’s important to lay down some ground work if things worsen. Investors fortunate enough to have capital laying around will be able to do a little shopping.

The other article of note surrounded the possibility of China lifting some of its subsidies in fuel and food prices after the Olympics are over. What was once my funky Chinese economic theory may become the story of the Chinese consumer bearing the brunt of higher prices like everyone else in the world.