Newsletter 2009/08/27 - The biggest Creditor
BERLIN/LONDON (Own report) - An advisor to the German government predicts a rapid loss of world political significance by Great Britain. The United Kingdom had overtaxed its armed forces in the wars in Iraq and Afghanistan and could not maintain its combat forces -"one of the central instruments for the achievement of political aims"- at their present levels, according to a a study paper by theStiftung Wirtschaft Politik (SWP, German Institute for International and Security Affairs). This development will be intensified by the heavy financial losses arising from the world financial crisis and will be accompanied by a severe loss of financial influence by the City of London. London's decline is likely to lead to "a movement of world-wide power structures favouring newly rising powers", say the authors. These prognoses, founded on wishful thinking, are nonetheless supported by underlying realities. Britain's economy is running into greater and greater indebtedness with the EU. This economic weaknessis leading to a trade deficit which London sources describe as"astronomic". Britain is running the biggest deficit with Germany. Seventy years after the beginning of the war, Germany has become thebiggest creditor of the formerly victorious power.