The global economy is at risk of folding in on itself unless policy makers face up to the threat of inflation and exchange rate inflexibility, according to Arun Motianey, director of fixed income strategy at Roubini Global Economics.
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A Japan-like outcome is a big risk for the developed world with deflation a big danger, he said.
Recent figures show that the recovery is sputtering in the US while China's booming growth has slowed down slightly, as Beijing unwinds stimulus measures.
The Bank of Japan revised upwards is economic forecast but reiterated it will maintain its easy money policy.
In his new book "SuperCycles" Motianey says the world has managed to recover from a number of shocks since the Latin American debt crisis, but getting over the financial crisis will be much harder.
"The global rebalancing mechanism through flexible exchange rates is not working as well as it should," Motianey said.
"Many emerging markets are resisting changes in nominal exchange rates. Higher inflation is causing some correction in real terms but it is too little and may turn out to be too late," he added.
China is the key to correcting this problem, according to Motianey. He warned that the challenges facing the developed world look even more problematic.
Ugh, the media has been claiming a recovery even before admitting there was a recession. They only retroactively "admitted" a recession after declaring there was a recovery, and warning against a "double dip" recession, even though they never at any point admitted a recession at all, and nobody knows what this "double dip" nonsense was. So they gave up on that term and now just say the "recovery has stalled."
ReplyDeletePeople need to bombard these writers and the media with angry letters or something. But I guess most people have already tuned out of the centralized news media so maybe it doesn't matter what they write, since nobody reads it.
Change is good
ReplyDeleteNice look EA
Dug the old
Will dig the new
Add a chat maybe
Send the Mexicans back home and make the lazy, no good unemployed do their jobs. I'm sick of supporting both of these groups with my hard-earned tax money. I can use that money for better things.....like a Fushigi Magic Gravity Ball.
ReplyDeleteOh, and even though I don't agree with a thing BrianWilliamDotyIII says, I think he's awfully cute, and he can bang this Cocktail Waitress any day...and all day.
Hope yaw'll did some preparing. You will need it..
ReplyDeleteI'm prepared. I just had a Left Ventricular Assist Device (LVAD) installed and I have a ten year supply of Tea Bags.
Dan Haar of courant.com wrote an interesting article titled "Elephant in the room: the low value of work."
ReplyDeleteI think it should be posted here. Just a suggestion.
No Deflation !
ReplyDeleteRead on to next article
Major Hyperinflation !
Who's on first? Hell Boys, nobody knows
Buy land
What are you nuts - don't buy any type of real estate right now; save all your cash.
Buy Gold
No! Not gold - it's way overpriced and way to hard to purchase with it
Buy Silver
No! Silver is as common as copper - it will never hit 25/oz.
World going to collapse on or before July 28th 2010 - well shit framer Dan - she's almost the 16th - better get here soon!
Hoard your cash - cash is king !
What are you crazy? the stuff ain't worth nuthing but toilet paper.
How about rocky mountain oysters you brainy smurfs you -
WTF - what a runaround; useless waste of energy.
As the late great Danny Kaye was fond of saying - I'm over it and furthermore I am O - U - T
outta here.
What suggestions do you all have on getting prepared for the collapse ahead? I would appreciate your top 5 most important things to do list. Thanks for the help!
ReplyDelete7:28,
ReplyDelete1) Find a less crowded town to live; hopefully one where the people all have close family values, anything away from a city. Get with family. Not friends. Friends are worthless unless they are companions - family is the only thing that counts here.
2) Get into shape. Don't mistake this for Hollywood ninja delusion however - no one is going to learn magic skills to fight people with. If someone wants to get violent with someone then the stronger, more vicious guy will win period. No one is going to fight a gun regardless.
However, it would still help to be able to run, last longer, have more control over one's body, move around, etc.
3) Ween off of drugs, substances, or addictions that you have. Start with one at a time until you feel ready to abstain from things like alcohol, cigarettes, T.V, internet, crap food, etc.
4) Ammo, food, water, and all that would be good if you can. Most will not afford gold or silver, and very few will be able to be able to store enough food and water for that long. It would still help one to have enough for a small period of time to prevent him from rushing out of the house the first few days.
Everyone will be rushing to stores, rioting and killing for goods out of sheer panic. Try not to be the kind that have to go to the store in that time.
5) Develop mind/nerve control, diplomatic finesse, social manners, level headedness, and detached observation. Others will be in a lot of fear when this happens, if you can remain calm and cool then you'll earn points as respectable. If those around you see you as respectable then you'll naturally be desired to work with and not against.
@Laura
ReplyDeleteAwwww
I get u them magic balls, mami
Roll that shit all up 'n down ya girl
Drier balls for u laundry too
Take ur sister to Mack Donalds when she's hungry
Maybe even give u money for the electric when the man's at the door
Mi own stimulus package
Stimulito por mi chica
On like Donkey Kong yo
But u sweet
BWD3: Sick W-A-C-K-O! Needs to be banned from this blog!
ReplyDelete10:08
ReplyDeleteThank you! Those are great suggestions and full of wisdom. I can do those and will begin right away.