Just look at UK... Largely based on finance sector and it does look pretty bleak for those outside... And I am not even sure if that is yet the end state...
There is some value there, but the cut they get is likely too large already. Then again it is all just fake numbers...
Their economy is headed for a significant crisis in the next 5 years. They put on a pretty facade, but it's smoke and mirrors once you get past the empty concrete shells.
It looks like the idea of money got completely detached from a useful value. Probably due to the world scale corruption. This is not going to end well.
It's simple, in commerce terms it directly implies lower future consumption, lower future labour supply and consequently lower value to investors. Losing economic strength will be a very large concern for any country.
I wonder if a good portion of that is due to the continued collapse in manufacturing, mining, timber, and other areas that are now predominantly imports.
I'm really doubtful. Foreigners are an easy group to blame, and they don't vote. I think the real problem is a supply crunch being exasperated by domestic speculators looking to invest money and not having a whole lot of good places to put it.
Not doomed, but your market narrows down. You better produce and sell something really special.
Switzerland is an example of it: its currency, and thus work of its people, is expensive. Their exports are things like high-end mechanical watches, and other low-volume high-precision machines.
What does "sorting out finances" even mean in the context of a country that does not actually produce/export anything[1]? Will they somehow make money appear without outside investments?
It’s quite an old trick in the book for any administration, whichever color it has, to try to push the can down the road until it gets re-elected. After that, it’s buyer beware.
Something to consider is that in times like these money are flowing in the wrong direction, instead of going from developed countries (US, EU, JP) to developing countries with better return rates (Emerging markets) it is the other way around, going into developed countries estates, bonds and stocks even with low returns which look already overvalued. That would normally read that there is way more liquidity than actual growth and the valuations are not accurate.
Reading those pages is just incredibly depressing to me. A GDP top 10 economy, bigger than Russia... And yet such an incredibly anemic technology industry and space program, essentially zero nuclear power and a joke military whose entire purpose is paying out pensions. While the government is churning the corruption machine, India is landing vehicles on the moon and alongside Mexico is set to become the next manufacturing center of the world as corporations move away from China.
There is some value there, but the cut they get is likely too large already. Then again it is all just fake numbers...
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