Comments on: Financial Markets Have Clearly Rallied

By: Pete

Pete — Fri, 25 Sep 2009 06:55:23 +0000

Haha Ross!

By: Ross

Ross — Fri, 25 Sep 2009 02:52:01 +0000

I think Biker should bring us a piece on rental cars ...

By: Biker Pete, Montreal, Que., Canada

Biker Pete, Montreal, Que., Canada — Fri, 25 Sep 2009 01:42:35 +0000

Sorry Charles... you're a Norville racist... and I can't bother reading your rants any more... .

By: Charles Norville

Charles Norville — Fri, 25 Sep 2009 01:02:16 +0000

MARKET RALLY? It seems to me that China cannot earn what it earned before if it has to absorb lots more of its own goods (remember US & Co buying habits are decimated) and is going to keep on lending an increasingly over valued US$ - China is purchasing gold with a US$ on the loose. The loop is definitely open, what's more it can't be closed that easily and is spiralling out away from its ends.

AUS MARKET? It has been reported that it cost $160,000/job to maintain employment. Its obvious we cannot earn enough through taxing resources sold to Asia, its fundamentally flawed to think we can, we owe to much money and the interest on the three tiers of Government borrowing is going to be crippling - Rudd vies for personal reward for borrowing from China and then purchasing back from them. To borrow money from Chinese workers on $6000/ann so we can pay Aus on the dole of $12,000/ann is insane.

Aus has not made preparations for the future for decades we never valued trade training, we train spivs to steal our money instead, (they steal lots more than plumbers). MARKET DIVIDENDS WITHIN AUS COMPANIES reflect the success of an economy, where is the evidence please.

By: Biker Pete, Montreal, Que., Canada

Biker Pete, Montreal, Que., Canada — Thu, 24 Sep 2009 22:27:45 +0000

Pretty sound analysis, Dan. It's possible there's also a(nother) simple (additional) explanation for China buying up gold, too. China is buying up _everything_ of value.... stockpiling years and years ahead, not only raw materials, energy and infrastructure, but almost _anything_ of value, with her immense surplus of funds. It's likely that in years to come, we'll all marvel that China got so much so cheaply. Your final sentence "Asia can itself become a consumer economy" may, in fact, be an understatement. Upwardly-mobile _massive_ populations with great aspirations, a cultural work ethic and planning timelines well beyond any western corporate or governmental vision, mean that we're probably going to see immense changes in our lifetime(s), well beyond anything we can now envisage... .

By: Dan

Dan — Thu, 24 Sep 2009 21:57:23 +0000

IANEOAE (I Am No Expert On Asian Economics .. or anything else) but to separate the physical economy from finance flows, Asia as a whole, is full of people, culture and history. It's also not starving (although Australia could feed them better), or crippled by disease (although Australia could export health products as there is great demand), nor is there an inverted demographic pyramid, on the whole. The education systems across Asia are good enough to support a hi-tech infrastructure (although Australia can still contribute). The only thing Asia lacks is, I would say, raw materials which it imports from Australia and via the US (oil), and, in many regions, it has uncontrolled corruption making business difficult and risky - but I would say this is improving all the time. China's menacing shadow could be a problem too, if left unchecked.

Remove the money factor (US fiat money and credit), and you have a recipe for greatness. Decoupling from the West (US) is easier than it seems, because Asia can itself become a consumer economy. If the US dollar collapses, suddenly the Asian employees won't look so badly off.

By: Charles Norville

Charles Norville — Thu, 24 Sep 2009 14:49:15 +0000

I seem to remember DR stating that the markets were being rallied ie cashed up, with borrowed and printed currency. The emerging Asian economies are having to boost the western spending habits by cashing us up with the money we gave them originally to purchase stuff we didn't really need and to induce us to keep on doing so. It is also stated by many including DR that the Asian economies cannot sustain domestic growth and decouple from export to the west on the low incomes that they pay their people. Someone?

By: Biker Pete, Montreal, Que., Canada

Biker Pete, Montreal, Que., Canada — Wed, 23 Sep 2009 03:03:07 +0000

"The U.S. is not the centre of the universe". And nor is Europe. And as much as we love France, a nation which builds a 'world car' with its brake so close to the accelerator is really still finding its feet... . I agree with your perceptions on Asia, Greg. In focussing primarily on the US scene (that's DRs role, not ADR's) its writers are missing the bigger emerging picture, which includes China, but _isn't limited to_ that rising giant... .

By: Greg Atkinson

Greg Atkinson — Tue, 22 Sep 2009 23:26:00 +0000

Dan I think you might be in denial. The markets have indeed rallied despite your frequent suggestions that the end was nigh Yes the U.S. economy is in for a tough time but let's all repeat out loud "The U.S. is not the centre of the universe".

If you are going to base your view of the global economy on what is happening in Europe or the U.S. then you really are missing a big chunk of the story..i.e Asia.

Sure many western governments will be in debt and times may be a little tougher for many people, but there are hundreds of millions of other people in China, India, Vietnam, Thailand etc. eagerly climbing the ladder of opportunity and they want stuff!

Next time instead of eating in Paris I suggest you have breakfast on a weekend in South Korea. The chances are when you look out the window you will see the construction teams doing their morning exercises before work. The west might be looking tired and downtrodden, but the east is just warming up.

By: prozak

prozak — Tue, 22 Sep 2009 13:06:42 +0000

"And politicians, jack asses that they are, are actually making even more promises to deliver things they can't begin to pay for now"

Not quite accurate Dan.

In the UK the race is on to show how gov. can cut spending without saying they are cutting spending - especially on the supposed essentials - i.e the money sinkhole that is the NHS.