SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 375.96-1.8%Nov 14 4:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: dybdahl who wrote (44351)12/26/2008 5:37:17 AM
From: elmatador  Read Replies (1) of 217825
 
"Why do you think that OECD will be hit harder than places like Russia, China, Arabic countries, Africa or maybe places like Philippines?"

I think money will flow to those countries because there they have lots of economic acitvities and no capital while in the OECD there is a lot of capital but little economic activity.

Granted in those places, (you mentioned) it is not capital only that they lack. They lack transparent rules, education and infrastructure.

Instead of bringing the people as immigrants to populate the OECD, (or send bits and pieces of activities to India and Eastern Europe as outsourcing)it is much more effective to bring the capital to where the economic activities are.

The first decade of this century we saw that as capital spilled over to the emerging markets. But those ocuntries don't need hot money. They need long term investment.
Against long term investment, conspired the rating agencies, which kept those countries as high risk and OECD countries as low risk to keep the capital inside the OECD.

We are just seeing the risk evalution falling flat on their faces. By the way US is zero risk and the risk agencies are all OECD-based. Now it is time to come clear and see what is risk for real.

(Parenthesis, I have not discovered this now. I study why people and countreis are por and why people an countries are rich. I lived and worked in rich and por countries alike. So I have seen on the gorund how this plays on.)

These last copuple of years were tests. Testing all the post-war construction created by the Bretton Woods agreement.

As those countries you mentioned skyrocket, they will suck exports from the OECD countries and we will see trade in a scale the world never ever seen before.

Give you an example: Denmark is not going to produce ethanol but would be seating nicely selling enzymes -and charging royalties- to produce ethanol of several sources.

Brazil is an allied of the Danes as it keep spreading ethanol to the rest of the world and this is a tiny little part of the whole scheme of things.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News