"have to travel back". It will if cyclical, it won't if structural. Once capital spread more evenly, it will spread and stays there.
It is not a pulsating that goes out and them come back and then repeat once again.
One think that capital does, once it spreads, it is to end the economic power houses. Economic power houses is what I called in my book, anomalies such as Singapore, Taiwan, HK, Switzerland, NZ, Austria, Sweden and even Canada itself that albeit being a large country behaves like a Singapore city state.
Those anomalies, pre-date globalization. They were necessary once the economies were closed, we have Cold War blocking countries and at the edge you had the supermarket and shopping mall for the communist Nomenclatures.
The economic power houses outlived their usefulness and try to change into something else to keep their standard of living:
I don't know about HK, but Singapore now, open casino, want to be a financial center like the Isle of Man, wanted even to have bar girls!!! |
