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

To: carranza2 who wrote (94847)	9/20/2012 11:01:53 PM
From: Box-By-The-Riviera™	Read Replies (2) \| Respond to of 220281

very possible, in the world that makes, all smoking guns possible. truely.

To: carranza2 who wrote (94847)	9/21/2012 7:06:43 AM
From: elmatador	Respond to of 220281

political systems that have figured out how to promise far more than can be repaid. ELMAT: They did so when the going was good. They though it would last forever. They did not factored in that if the rest of the world would enter the world economy the cartel of currencies they had would crumbled. So why is Japan’s government now one of the most indebted in the world, with a gross debt that’s 235.8 percent of GDP and a net debt (taking some government assets into account) that’s 135.2 percent of GDP? (In the euro zone, only Greece has government debt approaching the Japanese level.) After World War II, Japan built a financial system modeled on those of Europe and the United States. Financial intermediation is an old and venerable idea—connecting people with savings to other people wanting to make investments. Such a sensible use of savings was taken to a new level in Japan, the U.S., and Europe in the decades following 1945—helping to fuel unprecedented growth for entrepreneurs and a genuine accumulation of wealth for the burgeoning middle class. ELMAT: Lending at extortionary rates to fleece the developing countries helped accumulate wealth. But such success brings vulnerability. Modern financial systems also permit governments to borrow large sums from investors, and as finance has evolved, that borrowing has become easier and cheaper. ELMAT: As a result developing countries are not paying to their ears via exports of their capital, thus things got hard and harder for Europe Japan and the US. New policies (and some good luck) dispelled extreme crises from the core of the world economy after WWII. ELMAT: No mention that there is also 2.5 billion people consuming in the emerging markets?. Not half billion like in the hay days when the tiny G-7 ruled the world economy? Instead, the Japanese government is using private savings to fund current spending, such as pensions and wage payments. With projected annual budget deficits between 7 and 10 percent of GDP, Japanese savers are essentially tendering their savings in return for newly issued government debt, which is not backed by hard assets. It is backed only by an aging, shrinking population of taxpayers. ELMAT: That means Japan is living its past accumulated wealth until this wealth vanish and Japan will return to the insignificance it came from. In recent decades, financial sectors throughout the rich world grew at historically unprecedented rates; now they are dangerously outsize relative to the rest of the economy. ELMAT: Soon the financial gravity center will move tow here the economic growth is.