Tuesday, 29 September 2009

Asia is Following an Unbeatable Economic Strategy

Borrowing your way to disaster and the devil of future histories to come for Britain and United States

Or, why Britain and Canada will probably join neighbouring Currency Areas and lose policy making indendence!

Right now the world's worst economic transformation is looming and the two countries at the source of it, the UK and the US are totally impotent to change their borrowing and consuming habits. Driving straight for the cliff, the lemings rush forward to their ultimate transformation into bony skeletons and they take the world with them.

Such a thesis starts from the premise that house and land prices in USA should be stagnant, level, low, whatever word that you understand to mean, there should be no inflation in land or houses. House orices have not been stable nor have not been for many years. What does that mean? It means that land and real estate is still being used by these major debtor countries to pay for their enormous overseas debts that have built up through the imbalance of their trade with Asia.

Much of the debt is in Asian hands and property in USA and the UK will ultimately be owned by Asians. This will occur after the largest deflation in history as the exchange rates of these two countries swing to bring about a balance. Never in history has the imbalance of trade been so great for so long for so much. Asia may see forces that bring about a balance, but it will be eventually through the ownership of land and real estate in the UK and the US. Paper assets will not be enough to satisfy Asian demands for payment. Issuing currency will not be sufficient to offset demands for real assets.

This is not a disaster if it were to stop at increasing Asian ownership, but it won't.

The UK and the US are increasingly beholden to Asian interests and will eventually surrender their independence of economic policy. Made in Asia will be US and UK interest rates. As Americans are removed from their houses through the inability to pay deposits they will become renters of land and real estate. Ownership and control will fall to Asian interests.




The form of ownership will be as multinational firms with Asian names. These companies will produce in America, but they will not necessarily export from America. Profits will go to shareholders and these will increasingly be pension funds of Asian based multinationals.

The degree of imbalance can be reduced, but as the process is like that of climate change, it will not be seen until it us irreversable. Why? Because America and Britain fail to take action to get their savings rates up.

The problem is one of attitude. The British and Americans presently have the attitude that there is no problem with going eternally into debt to Asian interests. However, we sense a different reality, don't we. We know what goes as present policy does not address the debt issues.

Be aware of your independence










Drawing Active Conclusions From Your Feelings

Many readers will be living within countries or cultures where the act of being independent or taking an independent view is discouraged if not flatly forbidden!

It is not experience that prepares you for understanding so much as it is your head being in touch with your feelings.

No amount of feelings are good if you do not have the head to interpret them accurately. No amount of headwork is enough if you do not have feelings to go along with your brainwork. Such is the balance between what you reason and what you feel that they say these activities take place in different parts of your brain. Right side brainwork without left side brainwork predisposes one to lopsided results.

There are internal feelings and there are internal reasonings. Your head may use visual, auditory or touch tools in combination or balanced. When we use all three in conjunction with internal feelings we have more instruments and information to get our reasoning closer to the truth.



Add smell and taste and one is well away. Not only that but your mind can remember all five major senses as well as an infinite amount of internal processes to pin down accuracy. But such use of our bodies requires effort and self confidence!

Use all your senses and capabilities to gain your indendence. Borrow, beg or steal from others to get at the truth, then struggle within yourself to remember it when you most need it. Such self awareness and knowledge may save your life and those of others around you.






Wimteldum's Law


Stability and Instability and Maintaining a Sound Balance

It is a sad fact that one's conservative side tries to maintain endless stability, but in so doing creates the very instability it is seeking to avoid. And, so it is that in history those that sought stability and were conservative foreshortened their existence as they were overwhelmed by those necessary and unnecessary forces that predispose our world to endless unceasing change.

The irony is that we need to change in order to be stable and survive longer.

For example, we need to acquire foreign language skills to survive healthy and competitive lives. It is healthy to do so and may forestall the onset of dementia.

By seeking to be pure, we become impure. If we do not allow a little sinning to taste the bad side of our nature how are we to strengthen our struggle against it and recognize it fir what it is. Without a few vices, we become inexperienced when new vices do hit with fierce temptations. Priests without expression of their sexual personality can fail in their struggle not to become perverted and may seek excess on what they really want to avoid. Balance of forces of the good and the bad help to bring about positive changes that can give us confidence and capability. It you have potential and you don't test it, you probably will lose it.

Wimteldum's Law


Stability and Instability and Maintaining a Sound Balance

It is a sad fact that one's conservative side tries to maintain endless stability, but in so doing creates the very instability it us seeking to avoid. And, so it us that in history those that sought stability and were conservative foreshortened their existence as they were overwhelmed by those necessary and unnecessary forces that predispose our world to endless unceasing change.

The irony is that we need to change in order to be stable and survive longer. For example, we need to acquire foreign language skills to survive healthy and competitive lives. How many of my readers are learning a new language. It is healthy to do so and may forestall the onset of dementia.

By seeking to be pure we become impure if we do not allow a little sinning to taste the bad side of our nature. Without a few vices, we become inexperienced when vices do hit with fierce temptations. Priests without expression of their sexual personality become perverted and seek excess. Balance of forces good and bad help bring about positive changes that give us confidence and capability. It you have potential and you don't test it, you lose it.

YOU HAVE REACHED WOOH'S STREAM
The Internet User's Best Kept Secret

Sketches from scratches is a provocative blogspot that has grown out of the Wuh Lax experience. It is eclectic, which means that it might consider just about anything from the simple to the extremely difficult. A scratch can be something that is troubling me or a short line on paper. From a scratch comes a verbal sketch or image sketch of the issue or subject. Other sites have other stuff that should really be of interest to the broad reader. I try to develop themes, but variety often comes before depth. ... more!