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IMA_FARANG, on 2012-05-26 07:39:29, said:
Enjoy it while you can.My personal opinion only....but the people in the U.K. who somehow believe that the Euro collapse ....(inevitable now that Greece will default and now Spainish banks are showing problems)..... and that Eurozone and Euro collapse will not affect the GBP are deluding themselves.
All the European economies are like a house of cards....Greece, Spain next, then Italy....and all the rest of the cards will be falling sooner or later.
Yes, the Pound will be insulated somewhat....but the Eurozone turmoil will cause problems for the pound also.
As for the Euro...it's basically toliet paper now.
In fact the whole world economy will shake. It's all smoke-and-mirrors anyhow....based on an illusion....and backed by nothing but hot air and illusionary paper profits.
The Euro first, then the Pound and the U.S. dollar will come under pressure. Exactly how hurt they will be it's anyone's guess.
The days of "western" economic dominence are going fast if not gone already.....and it's never coming back.
The old Europe is on it's last legs, and Asia (especially China) will take it's place.
And the last time I looked at a map London was closer to Brussels than to Beijing.
I think your faith in China could be a bit over optimistic. They are far too dependent on the western nations for their export markets to maintain the growth rates they need. Though a decline in EUR and GBP might be something that they could handle, a fall in the value of the USD would have too big an effect on them and, because their manufacturing is based on high volume/low margin production they are far too dependent on cash flows rather than profit margins to bring wealth to their own people to replace and lost demand. Think Japan from a 2-3 decades back but on steroids.
