The Question Everyone Is Afraid To Ask
UBS AG and Bank of China Ltd. led financial companies lower after banks lost more than $100 billion on credit investments. Bang & Olufsen A/S and Wal-Mart de Mexico SAB were among consumer stocks that tumbled amid signs the world’s biggest economy is shrinking.
Emphasis added by me.
Now here is the Question:
What happens when the U.S. is no longer “the world’s biggest economy?”
What happens when the middle classes expand in both India and China?
What happens when some corporate numbers geek in a ginormous company based overseas crunches some figures and a light goes off in his head displaying the following sign:
We Don’t Need The U.S. Anymore!
What happens when that inevitable day arrives?