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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: Haim R. Branisteanu who wrote (37284)7/17/2008 6:38:41 AM
From: elmatador  Respond to of 219660
 
"massive transfer of wealth from the US and EU to resource rich countries - and what they will do with all this money?"

I can answer only for the money being transferred to Brazil:

The money is capitalized and hard assets: Airplanes, Factories, roads, communication networks, ships, oil rigs...

That's the beauty of the emerging markets. Money is not moving around. It is money put in hard assets to produce more money...

As a result, as those assets generates a profit, profit is repatriated to country of origin. As the case of GM shows, HP, Spanish banks show. The US has even dropped taxes on this money to attract more of it.