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A Man of Wealth and Taste
Join Date: Dec 2002
Location: Out there somewhere beyond the doors of perception
Posts: 51,063
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Yellow Teeth And Bad Hair
People move money out of their own country usually because the political or economic situation is dicey at home. Everybody in the world has been pouring money into the USA since 08 as it is the LAST BEST SAFE HAVEN in the world. That is why Interest rates are so low, Equities so high, USD so strong and RE has recovered. Relative to elsewhere in the world the USA is the Rock of Gibraltar. This is basically how it has always been, but more so since 08.
So what does the US do, they fk around some more. The Central Banks oil the water to make it appear to be nice and calm...stable....But if you peak beneath the waves, under the hood so to speak it is wreckage. There is not a developed economy in the world that CAN PERFORM, the continuing numbers tell you a story that something is seriously wrong, something that can not be fixed by all the kings men and all the kings horses. They have tried for 8 years. It is only getting worse and you can tell that by the ever increasing level of political and societal turmoil and unrest; that is a stress relief or a symptom of the greater underlying malaise.
The bottom line is that the global economy is on the life support system of debt creation funded by the printing of money. In normal times the increase in monetary supply would cause hyper inflation. In the current circumstances the increase in money supply is merely averting deflation which is in of itself an indication of the depth of the malaise. We see the increase of monetary supply having an inflationary impact on some narrow segments in the economy. Such as certain collectible or even equity markets which usually benefit people who have where with all.
The US ceased at least on the surface the printing of money in 2014 because they became aware of the dislocations in the global economy it was causing and the potential ramification that would have on the US economy. However to rectify that monetary imbalance and to restore equilibrium in various economies those states have been printing money (EU, Japan, China). This restoration of equilibrium by other nation states is having an adverse impact upon the US economy. The US is now ( 1st qtr 2017) barely getting out of the starting gate. So the question becomes what is the US economy going to look like when all the other nations have caught up in the printing of their currencies and equilibrium is once again restored?
There are very few people left alive that remember October 1929 where you can be a millionaire in the morning and be wiped out by dinner time. That is how quickly the dime can turn. People jumped off of buildings because of it. We live in a world where the possible seems impossible because it has not been a real experience in most peoples lifetimes. That risk while always a possibility was improbable, but not anymore. In that now more than at any time in the last 1000 years or so the risk is quite high of catastrophe taking place because of the increasing instability of the underpinning of the now globally intertwined economy.
Modern life is dependent upon a sophisticated and also fragile global economy of scale. Technological advances are only capable of being funded by this economy of scale as they are expensive propositions. If the global economy fragments into chaos so goes technology and the advances in standards of living. Civilizations can and have regressed in the past.
What we forget is the organic being of flesh, blood and emotion. Where mans intellectual capabilities have far outstripped his emotional maturity. Man since the Enlightenment seems to believe that rationality is a substitute for emotional maturity. This belief in of itself is a sign of immaturity. One can not substitute one for the other but has to look at the whole as a unified entity. But this is another subject.
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"Some Observer"
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