Tan Kin Lian's Blog: Global economy need to be fixed

Wednesday, October 06, 2010

Global economy need to be fixed

I read about the inability of the US economy to create jobs to reduce the unemployment rate. Many countries are now devaluing their currency to increase competitiveness. They are also reducing interest rate to near zero, causing cheap money to flow to Asian countries, causing asset bubbles. This will bring further turmoil to the global economy and financial market.

There are some talks about fixing the global economy. It is not easy. The current system is rotten and cannot be fixed easily. The root of this problem is ....... make a guess! Give your views in this comment. I will write my views later.

10 comments:

Unknown said...: root of problem is low employment rate in private sector to support a promising future.; October 06, 2010 8:42 AM
eng60340 said...: globalization; October 06, 2010 9:25 AM
Recruit Ong said...: Root problem is the rise in financial sector that creates little real production and value except gains from asset price manipulation aka gambling. It is a huge casino.; October 06, 2010 9:39 AM
Benjamin said...: is... a generation of over consumption on borrowed money. This has led to asset inflation as prices are bidded up with cheap borrowed money.; October 06, 2010 11:17 AM
Tan Kin Lian said...: I agree with all four comments. I shall be writing an article about the root cause of the problem - i.e. globalisation, competition, lack of regulation, greed.

Here is the surprise! The world needs to be more protectionist! Many people may not agree with me, but I think that the collapse of the global economy support my view.; October 06, 2010 12:36 PM
Kenny said...: I think the problem is that the politicians and economist have no idea how to spend money that will create value to the economy they are managing. So what they are doing now is suppplying cheap money to the economy just to keep it afloat. Whether the money spent creates value in the long run is another thing.
Look at what happened to Japan, they spent alot of money building bridges to no where.; October 06, 2010 2:11 PM
John YS said...: how about the current money that we use? Fiat money.

If time is measured in exact hours, minutes and seconds, why money shouldn't be?

Imagine the value of money changes frequently, business owners have a hard time tracking real profit and cost.

Just my opinion.; October 06, 2010 4:31 PM
DareToAct said...: Maybe we have over emphasized economic growth. It's like a Sumo wrestler who wants to grow bigger so that he can dominates over his opponents. He keeps eating and putting on weight until his internal organs fail to keep up. His knees and ankles give way.; October 06, 2010 5:21 PM
Unknown said...: Greed is the main root cause. We wanted to have more and more money and uses all sorts of financial engineering tricks to achieve it, e.g borrow money for investment...Focus should be on spritual health instead.; October 07, 2010 12:41 PM
Braddie G said...: Recession may be the reason behind this. Cutting down the range of employees may be the reason for it, I guess. Etizolam RX; December 23, 2019 3:46 PM