Now maybe David is sitting there today asking himself just what the hell that post of Edward’s on outsouring in the US had to do with a European centred blog. Well the answer didn’t take long in reaching us: the euro rose to a fresh record above $1.29 today as upbeat U.S. data yesterday failed to diminish the bearish view of the greenback and off it went to new multi-year lows against a range of other currencies (this should make us ask ourselves what may happen if we get a run of bad data).
And just what has this got to do with outsourcing? Well we seem to be on a conveyorbelt at the moment, one which stretches all the way though Asia across the US and then on over to Europe. What this is producing is ‘weakness’ in the US labour market, an intractable US trade deficit, and interest rates at historic lows. Which means of course that the dollar keeps on falling, and the euro keeps on rising. Until…….
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