>>Lead article in this months Forbes: 'The coming world capacity glut'. "Asia has all supply and no demand, which means its goods are now US bound.' Well at least somebody has an idea of what the problems are<<
Derrick et al:
The thing that has amazed me and continues to is, why don't the Asian economies figure it out? They need to create internal demand for their own goods, and get off the flawed model of "save, save, save & export as much as possible". It worked for a while, but now the BIG problem is "too much capacity", er , uh, make that "not enough demand". The U.S. has gone overboard in supplying demand to these economies for 25 years, and we are now so debt-laden we can't take anymore on; why don't they start to buy their own stuff? That will go a long way toward solving this "crisis" , which is really a two-fold problem. One, not enough demand in the region for its own product, and, 2) too much money stolen by corrupt govt. officials and powerful families/cronies, leading to monstrous bad debts, and the obligation to pay the western banks being dumped onto the backs of the helpless masses, most of whom toil for low pay in horrendous working conditions, so some corrupt bastard can funnel more USD to his Swiss bank account. Correct those two problems, and Asia comes out just fine in the end. |
