Currently, we have met lots of news to concern about the economic condition of some Asian countries like Brazil, India, Indonesia, and Turkey. The countries have been done a role of global demands to buy huge goods from foreign countries. Unfortunately, in the process of the role, they could not help accumulating more debt than what they had in 2009. The debt is very critical in the period of high interest rates, the time that is causing by exit strategy of US. The most scary one that market participants are focused on is lessened demand in the global financial market, the lessening that will cause serious drop in price of goods, making companies margin go down, making unemployment increase, and making people hesitate to buy some goods. But most of people are likely to be concentrated on only such a dark side. Now, I am staring at the silver lining in the global financial market. The most impressive one is fast pace of China as a globally huge country of consumption. With the pace of deregulation in financial institutions and foreign currency rate, China will be the protagonist in near future. One more country that we have to take into account is Japan. In my opinion, after increasing consumption tax that is the major issue in Abenomics, BOJ will shoot third arrow for their economy. More weakened JPY would be the great resources not only for Japanese export but also for consumption, the consumption that would be stimulated by inflationary expectation that is caused by weak Japanese currency. Strong economy of these two countries, German economy that is dependent on weak Euro, and US’ confidence of resilience are silver lining that will cover the negative issues that are currently debated.
Posted on: Thu, 22 Aug 2013 19:47:16 +0000
Trending Topics
Recently Viewed Topics
© 2015