As trade becomes more global, we become more dependent on other places(duh). As a consumer, China and Europe should be areas of concern for very different reasons.
The Euro is now 1.5-1 to the American dollar, which means European vacations, Swiss Army knifes and Gucci purses now cost 50% more. In the appliance business, Electrolux, Bosch and Miele have announced price increases. Miele is actually quite significant at 13%
China has the opposite problem. They have overstripped their capacity to produce. Factories have been idle, because of a lack of power. Plan on more lead time for basic commodities.
It should be interesting especially around Christmas....BTW, word of advice: Join our mailing list before next Wednesday.
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