Ordinary Cypriots with bank deposits above €100 k are racketed by EU authorities because Cyprus has a disproportionally large banking sector in relation to the size of its economy.
Cyprus is small and weighs little in Europe and the world, but what about London?
London accounts for about 27% of the UK’s GDP. The latter is $ 2.5 trillion, so the economy of London is around $ 0.7 trillion.
Global financial assets (bank deposits, bonds and shares) are about 3 times the world GDP. The latter is $ 70 trillion, so global financial assets are in order of $ 210 trillion, of which say 15% at least must be held in London which is the world’s second financial centre.
So London based financial assets must be over $ 32 trillion, over 45 times London’s GDP, compared to an average ratio of 3 for the world.
Figures clearly show that the London’s financial sector is totally disproportionate in relation to the size of London’s (and the UK’s) economy.
As similar causes tend to produce similar effects, I let you imagine the script for future instalments in the world wide financial saga. You might also wish to refer to a previous post entitled Why the financial pyramid is finally collapsing.
Fear not, look at financial developments in the light of your spiritual approach.
Love,
Leo
Copyright © Leo Foresta 2013
Leo Foresta 