[BRIEF NOTE] Can China do it?

[rfmcdonald]

Doug Merrill at A Fistful of Euros notes that the effective destruction of New Orleans and the disruption of its port and oil facilities have dealt a major blow to the American economy.

Stratfor reports, “Fifteen percent of all US exports by value go through the port. Nearly half of the exports go to Europe.” Anything from Montana to Ohio that’s sent to the world in bulk passes down the Mississippi River and past New Orleans. Virtually all of it is loaded onto oceangoing vessels at the PoSL. The port is expected to be closed for at least three months. This is a significant disruption in world trade.

[. . .]

The big question is consumer spending and demand. If gas prices take enough household income to cause cutbacks in other areas, what will that mean for the American economy? How sharp a drop in growth should we expect? And can the global economy run without the great engine of American consumer demand?

I suppose now is when the world discovers whether China can sustain the world's economic growth all by itself. Does anyone care to lay bets?