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Thread: The Big 4

  1. #1

    Default The Big 4

    The world has changed. Not just the climate but also its economic system.

    Global markets were sold down at the beginning of the year due to fear of hard landing of China economy as well as continuous falling in oil price.

    Is the world economy so bad? Or we simply have high expectations? What can the major powerful houses do? 4 major forces that dictate how the world should go. They are the U.S., Europe, China and Japan. Don't underestimate the son of the Sun - Japan. They may have lost the second world war but one should not underpin its influence and force.

    on 29 Jan 2016, the Bank of Japan announced negative interest rate in order to revive its economy, a crazy move cited by many. What was the effect? Immediately, global financial markets reacted positively with all indices in the world rallied. We like zero or rather super low interest rate, aren't we?

    Over at Europe, the ECB is going to announce another round of QE pretty soon, a more aggressive one than previous one. What will be the result? Euro will weaken and global stock markets will rally. Printing money and devalues its currency seems to be the only tool used by the central banks around the world.

    The fear of hard landing of China economy is uncalled for. Thanks to the media of spreading fear, many people got panic. China has slowed down compared last time but that doesn't mean that it is in a recession. It is merely growing at a slower pace, not no growth. That's the main difference.

    Last but not least, the U.S., the no. 1 powerhouse of the world. It has achieved full employment rate which is around 5%. GDP has grown modestly. It has achieved almost towards the end of the expansion path if you look at the charts. Therefore, slower growth is expected going forward.

  2. #2

    Default Re: The Big 4

    It's timely this subject is brought forth just like our ex-president Nathan said it's
    timely that the Elected Presidency's role and duties are "revised".I will try to give
    insight and hints to the realities that popular media has portrayed to the public mind.
    It can be food for thought rather than the usual banter here in kopitiam. Of course
    this is only my opinion and should you research further whatever you come across please
    keep it to yourself as others may think you are a lunatic..a fair warning..haha.


    Quote Originally Posted by Jedi View Post
    The world has changed. Not just the climate but also its economic system.
    NO..it's still chugging along (from the normal human perspective ).Except for the climate
    which some say will get hotter and it's not a precedent..meaning it has happened before
    judging from prehistoric analysis of the earth.

    Global markets were sold down at the beginning of the year due to fear of hard landing of
    China economy as well as continuous falling in oil price.
    Fear is a primal human emotion and the very thing that can evoke the herd instinct.
    One run..all run ( the lemmings behaviour) regardless of the actual circumstances.

    Is the world economy so bad? Or we simply have high expectations? What can the major
    powerful houses do? 4 major forces that dictate how the world should go. They are the U.S.,
    Europe, China and Japan. Don't underestimate the son of the Sun - Japan. They may have
    lost the second world war but one should not underpin its influence and force.
    I do not know about China as it has come into the scene only in the 1970s.While the rest
    can be described as "old money".When you say power houses, does it meann governments are
    the players Or are they only proxies? A hidden hand and rightly so as the powers that be
    would prefer to act in secret.

    on 29 Jan 2016, the Bank of Japan announced negative interest rate in order to revive its
    economy, a crazy move cited by many. What was the effect? Immediately, global financial
    markets reacted positively with all indices in the world rallied. We like zero or rather
    super low interest rate, aren't we?
    Just a manoeuvre to get things going.

    Over at Europe, the ECB is going to announce another round of QE pretty soon, a more
    aggressive one than previous one. What will be the result? Euro will weaken and global
    stock markets will rally. Printing money and devalues its currency seems to be the only
    tool used by the central banks around the world.
    That's how the show is manupilated but by whom?

    The fear of hard landing of China economy is uncalled for. Thanks to the media of
    spreading fear, many people got panic. China has slowed down compared last time but that
    doesn't mean that it is in a recession. It is merely growing at a slower pace, not no
    growth. That's the main difference.
    This is media portrayal..not reality.Farmers will carry on planting and harvesting
    barring weather changes as we need to eat.Goods and services are essential to life
    as modern city people expect.What is actually making people jittery? The value of
    money that determines their status in life.The haves and have nots.Who are the players,
    governments/proxies by secrecy? Who actually owns the wealth and in whose hands?
    Who are the real movers and shakers? It is certainly not who or what the media says.
    Hint..who owns the worlds media? It is privately owned..like Sony (Japan).
    Not like in sg..haha.

    Although classical economic theory is about supply and demand, who is supplying and
    demanding? What is money? If money is backed by gold where is the gold now?
    Money is essentially DEBT (other peoples' debt).Banks borrow your money and lend it to
    others needing it and charging interest and in turn make a profit.It's all on paper and
    can be manupilated.It's just a piece of paper stating " I owe you and will return your
    principal with interest".Picture Lehman Brothers.Debt gets passed around,what is real
    money? Ahem..you don't need real money just pieces of "I owe you" paper.Why do you think
    banks need to keep a "reserve ratio" of cash vs debt..in case there is a sudden withdrawal
    or run on the bank because of panic by depositors. Follow the money trail and you will find
    the masterminds.What or who is the Federal Reserve,the US government does not own or run it.
    The Fed belongs to a group of private individuals.That's why former fed chairman
    Ben Bernanke can tell US senate during hearing that he does not need to answer their
    questions if he does not think he needs to.Money is just a tool for an agenda but whose?



    Last but not least, the U.S., the no. 1 powerhouse of the world. It has achieved full
    employment rate which is around 5%. GDP has grown modestly. It has achieved almost
    towards the end of the expansion path if you look at the charts. Therefore, slower growth
    is expected going forward.
    The US is indeed special by design or fate.Only time will tell.Care to be Sherlock Holmes?

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