Bloody Hell, who would thought..

[Mega]

http://www.telegraph.co.uk/news/worl...-downturn.html
Mike

[touchring]

Re: Bloody Hell, who would thought..

Why the surprise? it is the western banks that are in trouble, not Asia.

I've said this many times but people here don't believe. In a financial crisis, the ones that suffer the most are the ones with the weakest link - the banks.

[goadam1]

Re: Bloody Hell, who would thought..

Permanent War for Perpetual Peace.

[occdude]

Re: Bloody Hell, who would thought..

The Chinese are playing chess while the pampered, slovenly west is playing checkers.

The Chinese were in US T-bills last year while everyone else were buying preferred shares in failing, falling and flailing financial shares. Even now, the Chinese pick off interests in key resource companies that are having liquidity issues like Rio Tinto (industrial metals) roseneft and petrobras (oil) under very favorable conditions (locked in at 12 dollars a barrel of oil for 350,000 barrels a day from Russia for the next 30 years.

The theme in the east is rising living standards, with hard work, savings and patient investing in companies of substance that are having short term liquidity issues. All very smart, smart, smart.


In the West, we're trying to hang on to a dying economic model of consumption, work for work sake and throwing good capital after bad. We invest our money in things that go "poof"
without any smoke.

The future theme of the world economy will be reduction of consumption in the West to efficient consumption in the East. Efficient Eastern consumption will be things that get a lot of bang for the buck. Increased efficient farming technology, factory automation, varied and efficient energy generation based on multiple platforms, aquaculture, clean water generation and healthcare. Regulating all this economic activity must be a sound currency, follow the money if its rotten the economy will be rotten.

The East does their thing and the West needs to do their thing. The commonalities are hard work, savings and prudent investment of scant resources. The East gets it and the West will rediscover it. The Chinese are the players right now and have all the components to set a global theme, thats why there's a shift of power and that shift will continue if not excellerate until we in the West "get it".

So, take it easy with the war footing for those of you still subscribing to the idiotic notion that war ends economic downturns (THE most dangerous idea to come out of the depression). This isn't WW2 and China isn't Germany. We have a lot to RE-LEARN from the Chinese. If we pick a fight with them, we'll probably lose and then the humiliation will be complete and then the recovery can proceed as it would have anyway without the billions of wasted capital and who knows how many dead.

[goadam1]

Re: Bloody Hell, who would thought..

i didn't mean a literally war. I was implying the ceaseless organize of societies around a war or crisis footing is a never ending cycle. Perhaps you read 1984.

Anyway, I don't know what you are talking about. I've still got my 401k, my xbox, a bag of chips, a nice car I lease and they lowered the interest on my condo and my student loan. So lighten up man. I like chinese. I just ate wok and woll and it was great.