Last time when happened, It created a sea of heart breaks, broken dreams and shattered futures.Recession cut loosed dementors to suck out the very life out of the life creating soul less individuals at their will.Memory of the aftermath is still a fresh in our minds with life as usual coming back on terms. Just a month ago i read in fortune about wealth creation and it seems it has reached new heights creating hype and hope of bullish economy and speedy recovery but wait is it real? or is just another bubble created because of the super economic activity of the two bears!
International fraternity freezes to death every time these Bears roar. Japan and most of Europe is dealing with worst debt crisis in modern history with speculation on the rife about a possible fallout.Where all these leads us? US is out to nurse its ailing economy with visions on more savings and less consumption of foreign goods while China is trying to super cool it's super heated economy with more emphasis on domestic consumption and less savings.But is this possible? Are they really equipped withe the short term losses to achieve long term goals or too entangled in the quick term solutions.The answer will be more or less decided by the US policy on it's own debt solution.On August the second with the current monetary flows and structure US will default on the debts which will be first time in the history off course.Only debt level increase or sharp and deep cut in spending will save US, both of which will create a wave of economic destabilization and only time will tell what it means. Funny part in this system even China with all its low cost factories and newly found wealth is so much tangled into this.It has the highest stakes in US treasury bonds amounting to $1.5 trillion direct and another $500 billion (still speculated) through indirect stakes.Both partners are talking silently and all others either not listening or pretending not to listen. China is so into US that even though there is still problems with US treasury and its hitting ceilings, China can't do anything but buy more dollars with a swollen eyes! Guys this blog is not to let you know the big bears story but to educate you that things are not yet over and more waves can be coming our way in form of our lovely bubbles! So stop spending and save as much possible who knows when these bears fall out :-)
Nice one Sir!!!!
ReplyDeleteGood article !!!
ReplyDeleteA beautiful articulation of global scenery i must say that :) good job STAR
ReplyDeletewell do u really think only saving can make us out of this trap because i think spending will be the one which keeps economy rolling .yes for sure it has to be in prpotion to the real worth or value add to the product
keep writing
Well said Kriti, Actually spending is something which keeps economy rolling but it should also be taken account which place on earth we are and how the overall economy behaving.The world has become more integrated and small in terms of economy and Sometimes too much spending creates a debt structure on the primary economy with all flows outside.So what you do if you are in that primary economy? You save :-)
ReplyDeletehmm no denials to the fact Mr SAGE ...look saving is indeed good for those who have all white money iam concerned abt ppl with dark(black) money its becoz of them economy dis balance is created.
ReplyDeleteIn short too much of any thing saving or spending is bad for the economy