Posted by: michaeldavidpower | October 9, 2009

Guess who’s coming to eat your dinner, Central Europe?!

In not one of the many macro research reports I read on the countries of Central Europe did I see the word “China” mentioned. Do the countries of this region know what is coming? Or do they honestly believe that, with the voluminous skirts of Western Europe to protect them, they do not have to worry about the competitive threat from the East?

There was a time when Mexico thought the same…

It is interesting that many of these same research reports state data not in US Dollars but in Euros. They then go on to imply that strong – even strengthening – currencies against the Euro are “a good thing”. So with the Euro strengthening against the US Dollar and the Chinese Yuan essentially fixed to the US Dollar, does this mean the commonly held view wants to see the Hungarian Forint and the Czech Koruna strengthen against the Chinese Yuan? Really? Oh dear…

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