Tuesday, May 25, 2010
The Economy according to Newsweek, and me.
Amid general global economic recovery, there is still cause for worry. Greece is defaulting, and there is speculation that the rest of the PIIGS (Portugal, Ireland, Italy, and Spain) will go the same way. Amid the crashing euro, the decline of the pound, while welcome for potential holiday-ers and exporters of UK product’s, is an added defect to the European supremacy. In any case, the pound has been over-valued for years, and I’m on the side which believe that it will not (or rather, should not), reach the levels of 2006.
There is change in the air. US is in as large a debt as any European country, but it is buoyed by its highly liquidity assets in investment and capital. Basically, money that hasn’t actually been cashed-in for its overseas investments, and overseas investments in US stuff, which flows from one side to another, or anywhere in the world. Think the motion of liquid. Splash splash.
Moreover, North Korea just sunk a South Korean warship, so there is friction to our North-East. Did you know, that China and US are fighting over oil field ownership in the Middle East? Or rather, US is diplomatically tip-toeing around the issue while China sends its nationals to even to warring regions to stake oil field claims. Makes you wonder if they are taking this comparative advantage of theirs ie. Human capital, also read as cheap labour, a little too far. Oh, and they docked two warships in Abu Dhabi. The Chinese are such nutcases, honestly.
Hey, I’m a Malaysian, not a Chinese.
This is all interesting to know, but honestly, it does not affect my family in any direct way.
In the future, China will seek to emulate Japan and/or Hitler and launch a full scale attack on the world. It will team out with fellow crazy, North Korea, and we will all die in a nuclear shower. If that happens, US will finally unveil whatever research they have been conducting in Area 51 upon the East. Oh, and by then Europe would be inconsequential because of debt, or they will disappear after the war. Russia will probably join China. Communist brotherhood die hard.