Time to duck and take cover folks, a huge deluge of **** is about to descend upon the EU and possibly the entire globe. We've seen Portugal, Spain and Greece do their best drag the EU into the economic gutter, not it looks as though the Italians are trying to do the same. Of course the "bloc" can afford to keep Italy afloat, but with France not exactly looking all that flash, huge cracks are beginning to appear in the dam walls. With Italy holding around a third of the world's bonds, they can't be allowed to stagger for too long. But the real problem with Italy's debt, is that nearly half of it is held by France and if France with a total debt of E1,664,265,500,000 is badly squeezed......
Historians will look back on this time as one of those periods when the balance of the world shifted, much like it did after WWII when Britain lost it's empire and it's financial clout and the USA and Russia emerged as superpowers. Now, due to greed and financial mismanagement in the west (particularly America) we're seeing the predicted emergence of China as the world's true superpower. That's not to say that the US and Europe wont have huge financial and military clout in the future of course but that will be tempered by the economic shift from west to east. In Britain, we've come to accept that we've gone from being the world's most powerful nation to a small but powerful follower. I wonder how America will cope with the economic shift?
That's actually one of the problems. We in the west have become so comfortable and apathetic that we've lost that drive to stay ahead of the game. I blame Ayn Rand and Alan Greenspan
Powerful people made an absolute killing just before they caused the `credit crunch'. The sheep always suffer and the wolves always profit from it. We should have executed the bankers when we had the chance.
One of the problems with leading first world nations, is that as they grow richer and more powerful, the cost of living eventually drives the cost of goods beyond the common reach, so governments begin to subsidize their citizenry, so they can remain in power. The populace know that they are living beyond their means, but the addiction is too powerful to resist.
So, the tradesmen in my town who bought ridiculous houses and 4x4s and went on expensive holidays, were living beyond their means?? Who'da thunk it! I really can't wait til interest rates go up 2%, thousands of pretend richdicks pamped oot their hooses. <SUPERSTARTRADESMEN>
If the US tries to keep China out by taxing goods, in the hope of helping local manufacturers, are they not just subsidising their own firms? Tax payers have to pick up the tab for these Government inspired edicts. Not good.
How long till the next war? China has it's own problems too. Many listed Chinese companies have been "cooking" their books, and the Yuan is still not openly traded on the stock market. The EU actually has a great oppurtunity to get out of the mess, but they need strong leadership who will take unpopular decisions in the short term. The US is ****ed - Obama's economic policies resemble that of 1970's Britain. They will default on their obligations and they will owe China a fortune, the Chinese won't be happy....... <WWIII>
War...think not. What do the EU have to do to get out from under the shower of **** heading it's way?
When the Chinese, who are building a fleet of Aircraft carriers, start getting pissed off with the US carrying out sortees in the Pacific, I can see tensions building between the nations, who are already not the best of friends for a whole plethora of reasons. The EU has a problem with debt, if it gets it sorted and stops paying lip service to addressing it, then they are in a decent position to grow in the medium term. They need to take their medicine now though.
China doesn't really have any option to building naval strength. It need to protect Western Indian Ocean interests, particularly around it's shipping lanes. China will be heavily dependant on energy needs that will be brought in through the Straight of Malacca. With US presence ho heavy in the Indian Ocean, what else can thery do?
Just every 21 year old that learned how to build Kit-houses, got paid £700 p.w and thought they were the ticket. They all bought big houses they couldn't afford, big flash cars and hunners a Ching. Now they are lucky to be getting £300 p.w and are back staying with their Maws.
