The Banking and Strategy Initiative

Chillin' out till it needs to be funded

Global Economics: A championship belt for the Euro and a pounding for the world

Of course the Euro will survive, even though German manufacturing and thus EU manufacturing indices are at an all time low falling to 45, even below China for the better part of one year now. but then this column is just to avoid repeating everything else the data obviously throws at you and just let a choice path emerge from the bewildering array of choices before the Developed governments.

Also because of this nation’s ignorance of the motorsport, F1 will be opening to the public in 2012 with the IPO worth $2.5B and $1.6B already with anchor investors in the City state of Singapore. More commodity giants ave been considering a move to Singapore and the city state has been angling fo rthe Dodd Frank belittled US Bank business in derivatives too. (Currencies especially)

Asian giant China has everyone running scared though it still boasts of a stable Services index meaning the Sector is expanding in China, Germany and US and while US and a few lucky ones have been running up better exports most in the Pacific have reported a dull thud from the falling exports in April and indeed May as new data is expected to reach us in a week.  China’s liberalisation maintains an even pace much like its currency and many would be surprised to know that China does have a bigger plan to integrate its Economy globally in another 3 years or at the most 5 years. And as big brothers go, it is doing the right things, signing local currency trade agreements as global trade triples in the next 3 decades but flailing as the WTO ‘ised world turns against it for the “Made in China” label that brought it till here.

The Euro will rest at much lower levels from here, the shouts for China’s currency to be loosened or appreciated to levels that will somehow save Us from  printing more debt will not go away so that decimates any chance of a hrad landing for China though that manufacturing is not going to start growing back even when growth backpedals to 6% as lower consumption may take its toll on statistics only. China’s poor(and we in India and Asia can empathise) have always beenthere and make two thirds of the population at the very least. Development funding of rural areas is already increasing. There are also half a dozen Central Asian economis that now produce almost half their oil and then other resources with China and some help from old friend Russia. And there is the dark continent and more than the Franco Spanish axis int he EU there is the continent of Latin America which has been chewing the cud on volatility for the last century at least if not more.

India is not going away either. Though a democracy as always survives as much on chicanery and the resulting waste in public expenditure, really there s no difference between that here and Obamanomics or Mexican hard wiring there or even Economic warmongering in the guise of NATO.  However the end-notes are that Global ETF flows that have probably doubled in the last 5 years before the crisis can start back into making the global playing field a simplified mass of numbers that just grow your portfolio but at the end of the rainbow there may be another class action suit and  aETF edition of the Ddd Frank law as opaqueness returns to Global finance after the crisis. The rest as Us and China has always known is in the rush for resources shored by Shale and speculating on Iron and Cotton, as Copper keeps its Ph D in Economics.

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This entry was posted on May 24, 2012 by in Amitonomics, Banking, China, Financial Markets, Financial Services, Global, India, US and tagged , , , , , , , .


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