This is a very interesting website:
https://www.cia.gov/library/publications/the-world-factbook/rankorder/2187rank.html
It basically shows who are the debtors and creditors of the world. Now the creditors who have been supplying the USA with debt, used for consumption, will stop their lending, and spend on their own economies. More on this here (Peter Schiff is a genius).
The US dollar is the new toilet paper, aligning itself with the Zimbabwe dollar. The German style "careful" monetary policy of the European Central Bank will, despite the socialism of European politics, make Europe rise above the USA by many multiples as an economy.
2 comments:
Not so sure Geir. Not so sure. Beware that the pigs are out there in the EU (or PIIGS: Portugal, Italy, Ireland, Greece, Spain). Leave alone the Baltic countries (with tied currencies to the Euro as "adaption", rediculous crap) and the Eastern bloc. Hungarian and Polish families have borrowed extensively in Euros and ... in short, they are in deep shit.
So: How can there be a European Central Bank policy in the case of a nonexistent ECB?
Of course we don't know anything for certain, but the strongest nations in EU, Germany and France is maybe not so eager in borrowing (or paying by other methods) for these countries.
But it seems to me that this would be necessary to keep the ECB intact.
Thrandur
It seems as if you have discovered Peter Schiff. Take note of two other guys also: Jim Rogers and Marc Faber.
Roubini is also ok, but he is not as focused (in my mind) as the others.
Both of them make a lot of sense, and in fact they make sense most of the time; while the contrary is true for most of the other.
These two-three are often quoted on bloomberg interviews.
Another severely interesting site to follow is ft.com, and if you are investing some small amount of money I'd suggest view from the markets/short view. For general often sound judgement the view from the top is also insightful as is the segment named "credit crunch".
Thrandur
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