Link to an interesting map at Mint showing the set of declines against the US Dollar. Britain is in good company with Mexico and Russia: though the declines are mostly commodity linked, and other industrial heartlands head upwards, which is another sorry story for them.
The hollowing out of Europe and Japan is continuing apace. Now, the decline in commodity prices has begun to hurt Australia. Export prices have plunged whilst an increase in the value of the Australian dollar will begin to put a following behind the contraction.
As the trends continue without any sign of abatement, are we facing a round of protectionism and beggar thy neighbour devaluations? It seems that both the Euro and the Japanese yen could be subject to collapse at some point, as the economic fundamentals are upset by economic and demographic decline.
The consensus views sharp contraction, followed by a floor and an anaemic recovery in 2010. Nobody wants to consider the alternative: slump, though it has already hit Ireland and some other countries.
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