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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Derrick P. who wrote (7022)	10/8/1998 11:55:00 PM
From: Mark Myword	Read Replies (4) \| Respond to of 9980

>>Lead article in this months Forbes: 'The coming world capacity glut'. "Asia has all supply and no demand, which means its goods are now US bound.' Well at least somebody has an idea of what the problems are<< Derrick et al: The thing that has amazed me and continues to is, why don't the Asian economies figure it out? They need to create internal demand for their own goods, and get off the flawed model of "save, save, save & export as much as possible". It worked for a while, but now the BIG problem is "too much capacity", er , uh, make that "not enough demand". The U.S. has gone overboard in supplying demand to these economies for 25 years, and we are now so debt-laden we can't take anymore on; why don't they start to buy their own stuff? That will go a long way toward solving this "crisis" , which is really a two-fold problem. One, not enough demand in the region for its own product, and, 2) too much money stolen by corrupt govt. officials and powerful families/cronies, leading to monstrous bad debts, and the obligation to pay the western banks being dumped onto the backs of the helpless masses, most of whom toil for low pay in horrendous working conditions, so some corrupt bastard can funnel more USD to his Swiss bank account. Correct those two problems, and Asia comes out just fine in the end.

To: Derrick P. who wrote (7022)	10/9/1998 12:07:00 AM
From: Ron Bower	Read Replies (2) \| Respond to of 9980

Derrick, "Many economists are now saying they (China) will reach their growth target of 8% this year." Trying to figure out why you included this with your post about excess capacity. ROn

To: Derrick P. who wrote (7022)	10/9/1998 9:06:00 AM
From: Bosco	Respond to of 9980

G'day all - dear Derrick, while it is true that there is a danger of a country [any country, for that matter] to try to export its way out of its problems regardless of the bigger picture [i.e., part of the beggar thy neighbour strategy,] it doesn't have to be the case. In line with what Perky has said about creating internal demand, but from a sociological perspective, there is a tremendous dislocation [as well as disallocation] of consumption. For example, the President of World Bank marveled on PBS News Hour last night that there has been an increase of Indonesians who subsist on a $1 wage level! Regardless of one's economic [theory] orientation, from socialist to supply sider, the idea is to reduce poverty level [here and elsewhere.] Therefore, with the right mix of programs and incentives, here and aboard, and more important, global cooperation, the reenactment of mutual assured destruction a la 1930s deflationary spiral can be averted. best, Bosco