It follows that should that success be threatened by the fact that the Euro is, however, tentatively, supplanting or supplementing the Dollar as the world's reference currency, you will see a very rapid change of heart on the Euro in Britain.  In fact you won't see the financial services sector for dust as it rushes to embrace the Euro and lambastes the Government for it's tardiness in adopting it.

It seems illogical that a relatively small economy like Britain's should be able to support a leading world financial services center indefinitely especially with all the currency exchange costs and risks involved. Indeed the current financial services melt-down may presage precisely such a shift in the relative importance of Sterling.

But Sterling chauvinism is very deeply embedded in British political culture.  Expect to see the shift to Euros made far too late to protect the formerly preeminent position of London amongst the leading financial centers of the World.

Index of Frank's Diaries