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

To: Robin Plunder who wrote (37863)	8/2/2008 10:39:35 PM
From: elmatador	Read Replies (1) \| Respond to of 217830

A monetary policy cannot happen in a vaccum unrelated to the rest of the economy. It is the capacity to manage the complexities of: high price commodities, an inflow of capital a strong internal economy and a highvpublic deficit. It doesn;t appear you read the thread's header that says: "This Thread must fight easy conclusions" Is it not to oversimplify to say: an inflow of export money as a solving all the problems?

To: Robin Plunder who wrote (37863)	8/2/2008 11:02:42 PM
From: elmatador	Respond to of 217830

In order to communicate in simple terms, journalists tend to use short hands. Simple concepts to drive their messages. But that doesn't mean that the short messages convey the fact as is. I understand that. They want to sell their news by trying to focus investors' attention. To convey facts as they are is very complex. The readership would shrink to half a dozen people if articles would try to convey to the reader the whole story. The danger, flowing from the above, is that people start reasoning based on the short-hands and the superficial information they get from journalists' sources. An example: "The US recession will cause an impact in the Brazilian economy" Why? "Because the UD answers for about 18% of the world's GDP. But Brazil exports to the US answers to 2.5% of Brazil's GDP. Which means if the US would be transferred to the Moon tomorrow morning, only 2.5% of Brazil's GDP would be affected. Correlating numbers and understanding scales of how countries interact is complex. It is for the one who knows the facts.