World trade collaspe?

[Mega]

Smart guy.
Mike

[Sapiens]

Re: World trade collaspe?

Great video Mike. Thanks.

[LargoWinch]

Re: World trade collaspe?

Smart guy.
Mike

Don't trust anyone with an accent (warning: sarcasm here).

[Jay]

Re: World trade collaspe?

Nice find Mega. Enjoyed it very much.

[The Outback Oracle]

Re: World trade collaspe?

Great post Mike!
His remarks on Indian attitude to non-payment of one's debts reminded me of Liam Neeson in the movie Rob Roy when he says
"Honour is like a debt you owe to yourself that you can never repay"
I think we lost that idea somewhere.

[GRG55]

Re: World trade collaspe?

He'll be happy to hear that all that money India is lending the USA is now going to buy Made in the USA flat-pack, pressed-oatmeal furniture, instead of the furr'in stuff.

High oil price fuels 'Made in America'

By Greg Wood North America business correspondent, BBC News Page last updated at 11:07 GMT, Friday, 12 September 2008 12:07 UK The high price of oil is beginning to put the brakes on globalisation, according to one international furniture-maker. The soaring cost of transport means that it is no longer cost-effective to make certain goods, like furniture, in low-wage economies and then ship them halfway across the world. As a result, many international companies are now looking to site their factories as close as possible to the markets they serve. And that is helping to revive manufacturing industry in some depressed parts of Western economies. In the southern Virginia town of Danville, Ikea is making coffee tables and bookshelves for its US stores. In the past, the Swedish company shipped these items from its factories in Eastern Europe. But since 2000, the cost of moving goods by sea container has trebled because of the high price of oil... ...The old tobacco warehouses of Danville are being converted to house 21st Century businesses. A whole swathe of foreign companies - Polish, Indian, Mexican - have set-up plants here to be near their US customers. Danville's city manager, Lyle Lacy, says 6,000 new jobs have been created over the past four years... More...

[LargoWinch]

Re: World trade collaspe?

Watch this clip for the 2nd time this week. It is frikin awesome.

See you in 2020 with gold/crude/silver laughing all the way to the bank!

[we_are_toast]

Re: World trade collaspe?

Uhhhhhh, I have a dialup internet connection (maybe others do also) and really can't watch videos . Would anyone care to give a summary of the video?

[LargoWinch]

Re: World trade collaspe?

Dude...that is a 60 min clip of a guy talking faster than Chevy Chase...

Time to splurge on broadband!

[Rajiv]

Re: World trade collaspe?

Here is a June 2007 article by M. R. Venkatesh - The coming collapse of the US dollar

The skew in the global financial system -- commonly called 'global imbalance' -- seems to be fast spiralling out of control.

For some time now economists have been engaged in the mother of all debates: whether the US dollar would collapse by as much as 40% when compared to other currencies (some are even betting on the US dollar going belly-up) or whether there would be an orderly devaluation -- that is, a gradual revaluation of other currencies vis-a-vis the US dollar.

In effect, the question that is confronting us is not 'whether' but 'when' and by 'how much.'

This global imbalance can be understood in economic terms by simply examining the massive size of America's twin deficits -- trade and budgetary. Put modestly, Americans have been living way beyond their means, consuming much more than what they could possibly afford and, in the process, borrowing far beyond their capacity for too long.
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Continued

and another June 2008 article - The REAL reason why oil prices are rising

By now it is becoming too obvious that the United States is playing the oil game all over again. And this is the desperate gamble of a country whose economy is neck deep in trouble.
Given this scenario, managing prices of oil is central to the US economic architecture. Expectedly, this gamble has been played in a great alliance between the US government, US financial sector and the media.

I have earlier written about:

• The impending collapse of the US dollar on account of the inherent weakness in the US economy caused by its structural weakness as reflected in the sub-prime crisis;
• The repeated softening of the interest rates in the US that has the potency to kill the US dollar; and
• How the fall in the US dollar suits the US corporate sector, especially its omnipotent financial sector.

Naturally, since the past few years, the US financial sector has begun to turn its attention from currency and stock markets to commodity markets. According to The Economist, about $260 billion has been invested into the commodity market -- up nearly 20 times from what it was in 2003.
Coinciding with a weak dollar and this speculative interest of the US financial sector, prices of commodities have soared globally.

And most of these investments are bets placed by hedge and pension funds, always on the lookout for risky but high-yielding investments. What is indeed interesting to note here is that unlike margin requirements for stocks which are as high as 50 per cent in many markets, the margin requirements for commodities is a mere 5-7 per cent.