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To: carranza2 who wrote (19369)6/8/2007 1:04:05 AM
From: elmatador  Respond to of 217542
 
C2, apparently you haven't read the thread's heading: "This Thread must fight easy conclusions".

You conclusion was, unfortunately, an easy one. Can you elaborate in th ins and outs of your statement?



To: carranza2 who wrote (19369)6/8/2007 1:42:42 AM
From: elmatador  Respond to of 217542
 
First let me explain coupling. Coupling is loved all over the world. It is very important to understand the concept of coupling, to get a glimpse in the decoupling conditions.

The phrase:

"U.S. gets sneezes the world gets a cold"

"Our currency. Your problem"

These two well known phrases define coupling. I was perhaps no older than 14 - 16 years when I read: The U.S. and Europe must growth so that the developing countries economies grow.

It struck me as stupid statement. Why can those countries grow by themselves? To answer that question I needed to learn a lot about how the real world works. Man, you have no idea how many piles of books I read to get to a final conclusion defined as:

1) Set of circumstances

2) Demographics.

Now I am totally and absolutely satisfied I have the ultimate answer. Guys in this thread here? They are just lucky that I can distill for them the ins and outs of my definition.

The economics of there world is an open book for me. It's dirty little secrest plain to see.



To: carranza2 who wrote (19369)6/8/2007 1:52:03 AM
From: elmatador  Respond to of 217542
 
But there is more to coupling, C2. Much more. Say Iceland, 250.000 people, a country the size of a Brazilian slum, has a financial problem. The market takes that news and say, the world is going to the dogs.

If Iceland disappeared under the North Sea today, only a fish would be affect by 250 bodies to feast on.

As you can see this thread is hard hitting and is not used to political corrected niceties, mind you. But what happens if Iceland has an economic problem? The market couples it with the rest of the world where you have a real economy and not a football field sized country, Mr. Carranza 2!

Worse! People start acting as if this coupling is for real. Of course they do that because they see they can milk some money in the process.

Obviously for an economy where 30% of ALL corporate profits come from the finance industry, coupling and money out it is big business. Thus no one want to get rid of these mechanisms of throw some smoke screen in front of the eyes of the ignorant and rake in some cash.



To: carranza2 who wrote (19369)6/8/2007 1:59:57 AM
From: elmatador  Respond to of 217542
 
Once coupling is perfectly understood, decoupling becomes self-explanatory. But I have to give the Thread a real case of decoupling.

Argentina due to lousy economic policies defaulted in 100bn. It was supposed to drag Brazil down and sink it and leave it in a decade to recover.

Instead the Brazilian economy decoupled, and, while Argentina solves its deflating problem, have grown, attracted capital and its currency appreciates 83% against the USD.

Not see that this is not Iceland. Is a real country, and it involved real money. And there wasn't any coupling.



To: carranza2 who wrote (19369)6/13/2007 12:45:57 PM
From: elmatador  Respond to of 217542
 
decoupling from economic developments in America. Signs that solid growth in emerging economies is helping to counteract slowing US growth have resulted in some economists believing that key economies such as Japan and the eurozone are decoupling from economic developments in America.

news.monstersandcritics.com



To: carranza2 who wrote (19369)6/13/2007 12:47:57 PM
From: elmatador  Respond to of 217542
 
According to Merrill Lynch, global economic decoupling gathers pace
10-Jun-2007


Merrill Lynch

According to Merrill Lynch’s mid-year 2007 global economics report “Global Decoupling: A Marathon, Not A Sprint”, the global phenomenon of a decoupling between the economies of the USA and the rest of the world is becoming more pronounced and is set to last. Merrill Lynch’s view on decoupling reflects how the US economy has shifted to a lower gear. The Asian economy is displaying resilience. GDP in the region is growing strongly despite a slowdown in exports to the US due to higher exports to Europe and other parts of the world.

Alex Patelis, Head of International Economics, Merrill Lynch, said, “If anything, our bullish call on global growth last September was not bullish enough. Looking into the balance of 2007, our view stands intact. This is a year of transition as the US passes the global growth baton to the rest of the world”.

The Merrill Lynch’ global economics team believes that the global economy will continue to grow in 2007 with no sign of a significant cyclical slowdown. The bank’s economists are more bearish than most on the prospects for the US economy, but are more bullish than consensus about the rest of the world. decoupling is not simply a cyclical trend. Structural forces, such as a sustained investment spending boom outside the US are driving this global economic force and giving it longevity. inflation poses the biggest risk to global growth and the threat it poses is higher than the market is currently anticipating. Merrill Lynch forecasts non-US inflation to rise to 3.4% in 2008 from 3.2% in 2007



To: carranza2 who wrote (19369)6/21/2007 9:02:50 AM
From: elmatador  Respond to of 217542
 
DECOUPLING - Europe's Manufacturing, Services Growth Accelerates

Message 23641526