[zaph]

Quote

AUSTRALIA'S key trading region in the Asia Pacific is the most vulnerable part of the world to a sudden capital strike by global banks, a leading economic authority has warned.

New research from the influential Bank for International Settlements shows emerging markets in Asia would be heavily exposed if there were a credit crunch.

The euro fell last week against most other currencies for the fifth week in the past six despite a European Union agreement for tighter budget controls.



Read more: http://www.theage.co...l#ixzz1gGLmjlt8

[wulfgar]

I recall Faber's metaphor. The West is very fat and Asia is very skinny, the West can afford to lose weight.

[cobran20]

wulfgar, on 11 December 2011 - 11:23 PM, said:

I recall Faber's metaphor. The West is very fat and Asia is very skinny, the West can afford to lose weight.

economic slimming could be the fad for this decade. Perhaps Peter Foster will flog a product to help us all!

[wulfgar]

cobran20, on 12 December 2011 - 12:24 AM, said:

economic slimming could be the fad for this decade. Perhaps Peter Foster will flog a product to help us all!

What Faber meant is cutting the cost of production, the West has endless opportunity to cut the cost of production.

America could save money by simply finding CEO's that cost less than 30 million a year!!! The fact is westerners can take hits to their real consumption of goods and services and still be quite well-off compared to the rest of the world. (that would be dang bad for the price of property.......I shed a tear!!!)

But how can you cut the cost of production in China? Can you you imagine cheaper LCD screens? My TV broke down two years ago, so I've been using my old Medion Computer set up as a TV screen. Right now I could buy a 26"" LCD for $225.

Basically there is heaps of fat that can be cut in the West.

As for the all-you-can-eat-diet and still fool yourself that you're slimming......see Goldman Sachs.

At the moment I weigh 110 kg, a decade ago when I was doing gym I weighed less than 80 kg.

Last 9 months I've kept myself to 3000 calories a week, now I'm working on 2500 a week. I'm 30 kg overweight, I could live on a starvation diet of 1500 calories a week for 30 weeks if I had to and still be in good health. That's what they fed industrial workers during the siege of Leningrad.

[savagegoose]

http://www.zerohedge...se-hard-landing

Quote

Within the context of declining housing starts, plummeting transaction volumes and the beginning of a meaningful move down in housing prices, these shifts in the steel market have been an interesting harbinger of more substantial problems in the Chinese economy.

This post has been edited by savagegoose: 12 December 2011 - 02:47 AM

[wulfgar]

Quote

Thus we could be in the cuckoo land of “burning the village to save the village”. Europe has to be unambiguously in deep enough of a recession for the ECB to let fly with all its weapons.
Read more: http://www.theage.co...l#ixzz1gHzwzrj2

Basically Pascoe is saying that improving productivity burns down the village???


He is just crying for all the useless unproductive specufestors who get burned!