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Strategies & Market Trends : Currents of Currency

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From: The Wharf	8/13/2012 3:08:52 PM
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Shares of Shanghai-listed Citic Securities, China's largest brokerage firm, fell by 9.1 percent on Monday after rumors the company had suffered a large 2.9 billion yuan ($460 million) loss on overseas trading. A bigger-than-anticipated slowdown in Japan's growth rate weighed on markets Monday though investor hopes of more stimulus measures from the world's central banks kept the selling in check. The news comes on top a slew of reports out of Asia that point to the region losing momentum. Most concerns about Asia have centered on China _ a raft of figures last week showed Chinese growth waning. Bank of England to forecast zero growth in quarterly UK inflation report Result will put pressure on George Osborne, the chancellor, to ease austerity measures and take steps to boost economy When valuations of given items move beyond the majority of Individuals income ability to buy products, currency is then acting as the result of currency which can be non related to the consumers world of labor unit trade. Simply put in the US currency is dollars one gets dollars for the hours one puts in at work. Most nations attempt to stimulate the economy by means of injecting cash into it. Because the labor market has changed significantly it is not a wise thing to do as dollar creation does not end up creating a balanced economy but an economy that generates income in certain segments. Some of these segments such as hedge funds do not create products nor do they require a large employee base they create currency. Currency creation there of is not job creation but it can create inflation of wages and products in certain areas yet depress wages in others. If you base value on too far into the future value or if you hedge and create income from the hedge, labor required to create the income is by far less than would be if that income was created from a sewing factory that was not automated. Income is the hopeful result of any endeavor but in the case of more people being employed the benefit is much greater to the entire economy. What have I said basically we have to be very careful on income inequality be that the result of cost saving or the the ease of paper generation . If income inequality becomes too vast it can be a catalyst for war Dissatisfaction is what caused the revolts in the ME. Paper not guarded carefully can have the result of no value be that by inflation of product or deflation of papers value in world of currency trade.

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