Which, of course, under pressure, just about everybody in the US or Europe has been told for years, but we don’t really believe it do we?
But the latest Nielsen Global Consumer Confidence survey shows that consumers are feeling pretty good in India, China, the rest of the Far East and, intriguingly, Norway.
These consumer markets are booming despite individual stock markets taking a powder on the back of problems in Europe. But that’s partly, or largely, because the main indices are made up of global companies.
So the UK stock market sinks when miners are under pressure. They don’t dig anything out of UK soil but they’re all listed here, accounting at the moment for a ludicrous 30 per cent or so of the FTSE list of top 100 stocks. So when Australia threatens to tax them more, the London stock market goes down.
And the global banks are suffering over worries that they won’t get their money back from funding villas in Greece or golf courses in Portugal. Well bigger fools them but, actually, they will get most of their money back.
But what the so-called developed economies haven’t woken up to is the fact that growth in the near and Far East isn’t just a nice outlet for exports, it’s where economic power will lie over the next 50 years.
Is this what they call a double-edged sword?