The dollar is losing its reserve status at a faster pace than generally accepted as many analysts have failed to account for last year’s wild exchange rate moves, according to Stephen Jen.
That's going to be the big question. How will the workers in Europe react to their standard of living being eroded and their social safety net yanked away. Europe is headed for mass austerity that will be justified with the threat of the asiatic hordes in the east. Will the fear of Russia and China be enough to keep Europeans in line?
I don't see how the unfounded fears of Russia and China can keep Europe (and the rest of the west, but Europe in particular) in line. Unlike the 1930s, they can't channel all that demagoguery to anything substantial for fear of MAD after all.
All that societal pressure will just keep simmering, with mass austerity making it all worse, until something explodes IMO. As a Canadian, it certainly seems like that's how things will go here as well. For Europe, hell if I know how it'll go, but I expect we'll either see the EU begin falling apart in a very real sense in the future, and/or start cracking down on Euroskeptics of all stripes in an attempt to hold itself together and consolidate power within the sinking ship.
That's my impression as well, there is too much internal division within western societies now, and we're already starting to see a backlash against liberalism building. As the material conditions continue to deteriorate, there's going to be more and more civil unrest.
That's going to be the big question. How will the workers in Europe react to their standard of living being eroded and their social safety net yanked away. Europe is headed for mass austerity that will be justified with the threat of the asiatic hordes in the east. Will the fear of Russia and China be enough to keep Europeans in line?
I don't see how the unfounded fears of Russia and China can keep Europe (and the rest of the west, but Europe in particular) in line. Unlike the 1930s, they can't channel all that demagoguery to anything substantial for fear of MAD after all.
All that societal pressure will just keep simmering, with mass austerity making it all worse, until something explodes IMO. As a Canadian, it certainly seems like that's how things will go here as well. For Europe, hell if I know how it'll go, but I expect we'll either see the EU begin falling apart in a very real sense in the future, and/or start cracking down on Euroskeptics of all stripes in an attempt to hold itself together and consolidate power within the sinking ship.
That's my impression as well, there is too much internal division within western societies now, and we're already starting to see a backlash against liberalism building. As the material conditions continue to deteriorate, there's going to be more and more civil unrest.