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

To: THE ANT who wrote (100008)	4/16/2013 9:48:57 PM
From: elmatador	Respond to of 217587

Society won't choose but has to fight back to get. Need political maturity to fight back. Political inmature countries face two possibilities: 1) revolt and destroy the stock of capital and the means of production trying to grab their share of the country's wealth. (all popular revolts in history) 3) Populist persona takes over power using the disaffected populations as mass of maneuver (Venezuela, Nazi Germany, Argentina's Peron, Mussolini's Italy) Brazilians , early 80s, did neither. They let themselves be fleeced. went back 30 years. What we've seen in the last 15 years or so in Brazil is just the recovery (catching up) from these 30 years backward trip it did in the 80s during the debt crisis. Nothing more than that. What will the developed countries do? the 1) the 2) or the Brazil?

To: THE ANT who wrote (100008)	4/16/2013 10:17:05 PM
From: elmatador	1 Recommendation Read Replies (1) \| Respond to of 217587

There is a new economic world order taking place. It is a process comprised of many small events. It moves like tectonic plates, store energy and release once energy wins over friction. China pull, has released energy as major force in the last 13 years. Developed countries start giving up hopes of returning to the good old days. Developed countries accept new realities. Emerging markets discover the sugar daddies (developed countries last centuries -English plus American) will not come to fleecing nor to rescue. Emerging markets now know they are on their own. They became free from fleecing, but with freedom comes responsibilities. Once a major pull is removed, (Japan since 1990) the world works in different manner: As ground was removed form its feet Japan pull in the economy vanished. Model exhaustion. Asian export-led growth model is exhausted. Developed countries no longer can help them export their way out of poverty. This is all history. View on the rear mirror. What do we see in the through the glass, what is right in front of us? What will be the next pull as we witness the world economy adapting to the new economic world order? This are the answers we need.

To: THE ANT who wrote (100008)	4/18/2013 10:07:00 AM
From: elmatador	Read Replies (4) \| Respond to of 217587

Brazil raises interest rates to 7.5% sought to reassure markets on Wednesday night that it was still the nation’s principal guardian of inflation by ending a period of easier monetary policy that lasted nearly two years. Message 28843062

To: THE ANT who wrote (100008)	4/18/2013 9:30:28 PM
From: elmatador	1 Recommendation Respond to of 217587

We tend to look interest rates as cause and effect of GDP growth as: 1) Economy heating up, unemployment down, inflation up GDP up. 2) Increase interest rates. economy less liquid, economy cools down, GDP down. I look at like this: 1) Economy heating up, unemployment down, inflation up GDP up Owners of capital not benefiting from the economic growth as money is not transferred to them. 2) Increase interest rates. economy less liquid, economy cools down, GDP down. Money is now transferred to owners of capital who benefit from the slow down of economic growth. Included countries that lack capital and see how it looks: 1) Economy heating up, unemployment down, inflation up GDP up Owners of capital not benefiting from the economic growth as money is not transferred to them. You just fine tune your economy for fine balance of inflation and unemployment. How can you have owners of capital money having money transferred to them? Lend money to the other countries that lack capital and voila! Money is now transferred to owners of capital who benefit from the slow growth economies that lack capital that must pay higher interest rates. This is how fleecing worked: By the creation of artificial lack of capital to remunerate the capital owners. Overtime, the capital was being hogged in some countries and other countries had less and less access to it. The huge amount of capital had no where to go. Started having effects on the real economies. Capital easy. Money easy. They relaxed. Send their industries to other countries. Created artificial barriers for economic growth... As a result they had capital but no economic activity. While elsewhere there was economic activity but no capital The huge amount of capital created a generation of people who wanted -not to go into industry- they wanted to go into finance. For there is where the money was. With the brightest guys in finance they created lots of artifices to make money aka bubbles. And they burst. To avoid bursting dragging down the economies, they printed more money. This was their biggest mistake. For they lived off money scarcity. Money no longer scarce, it flooded places where there was economic activity but lacked capital. Burdened by high interest rates on their debts, they paid them up and exchanged for lower interest long term debts. Then they let their belts -tightened for decades- lose. They started consuming. They now could even reward the poor people so that they had less social problems.

To: THE ANT who wrote (100008)	4/18/2013 9:43:06 PM
From: elmatador	Respond to of 217587

That fine tuned economy for acceptable inflation and unemployment was thrown into disarray. Model no longer works Why that? Because there is no capital being imported into the economy, from the countries that exported it via payment of interest rates, which were reward for the capital imported due to scarcity. This happened too fast. As a result the economies, now hollowed out because a big chunk of it the industry was exported, cannot recover Neither can they create capital scarcity without themselves being destroyed by that. As a result, the only way to keep the economies afloat is by shrinking it to reflect their actual sizes. There are no interest rates income, from abroad, to boost it. That is why the weaker countries, that rode the trem da alegria of finance, are being severely curtailed and were the first ones to fall. The bigger ones have critical mass and scale and can shrink. If you are a small country you cannot shrink, you just vanish Because people did not know what really propelled their economies, they believed their own propaganda and they thought they were richer that their real economies warranted. In the countries that lacked capital, they also believed their own propaganda and thought themselves poorer than the actual economies warranted.