Cypros A strong economy

“I think the impact in Cyprus will be less dramatic. The same will be true in Europe, because Europe is a well run economy with modest budget and trade deficits and good rules that have been able to insulate the economy from these abrupt changes that have happened in the US, where adjustment has been postponed for too long,” he said. “Americans have been living beyond their means. They have a huge budget deficit because of the [Iraq] war, a huge trade deficit and they have only been rescued by the willingness of people like the Chinese and the oil rich countries to hold on to their dollars.”