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62 sats \ 7 replies \ @Undisciplined 6 May \ on: China Surpasses EU and US as Dominant Partner for Developing Nations econ
Geographically, Europe could find itself being the out-of-the-way region, rather than the center. That would give it the same kind of trade disadvantage that Africa and South America currently have.
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I'm afraid Europe is going to have a turning point at some point, but first we're going to have to be sunk in sh*t
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Do you think this could happen in the medium or long term?
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Either... both.
Trade flows scale proportionally with economy size and inversely with distance. As Europe shrinks economically, their trade partners will also shrink, but to a lesser degree.
Over time, economies closer to Asia will grow more and those closer to Europe will shrink.
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This makes a lot of sense, if the outlook continues like this, I can see Europe progressively weakening until there is a breaking point, I think we are in for quite a bit of pain.
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They might just be at a trade disadvantage, by virtue of being further away from Asia, and that might put downward pressure on their economies.
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