SAMPSON oNWUKA
The world markets does not alter its definition with holiday end of sale or hardly fail to transform some of the basic principles associated with the changes that take place in any society. This 2015 has not fared any different. Unlike the year before some of the ground swells for leading high earn and durable product held their underwear against the thoroughgoing policies of most central banks. There are more Billions in the year 2015 than anytime in world history, billions by percentage of national resources to personal income. There are more currencies entering world markets than the year before and by proxy, U.S dollars is not enjoying exuberance and is not contracting. The quality of such strain over stress is that it promotes competency leading to endurance for periods of economic moderation. It is not to be said that the cornerstone on which this theory is laid is fitting for a struggling world, or least leads to a corrosion of the rough edges for global markets free from friction and zero ball movement. If the attention that is paid to a Federal Reserve is thawed by the premise to ‘hold’ on all interest rate motivation, it is wisdom to transition to a new policy early on 2016. A dip in market this late quarter provide corporate the cockpit for possible policy by next year. We can encourage the argument that some of the pale earnings rate of several companies in the United States suggest a repair to the system dynamic and short falls in the narrow market. In the main market the situation merits half the consideration, that under $40 a barrel for crude oil housing numbers promote signs of endurance, a soft landing on market rate based on the removal unconventional attention to Government exercised polices. In short, the U.S President and the Federal Reserve is enjoying one of the best years – if not the best year – and it looks like the year heralds the end of the damages from 2008. It is interesting that some of the usual landmarks of the previous decades gave to better realities of new financial structure, at least recently, there are new major production markets entering wholesale into the land mark of world. The last time Europe as a market force braced itself against the realities in Asia, in Russia and North America was perhaps in the last 50 years. In essence a comparative between 1920’s economic conditions leading to 30’s bundles under the tapir of a 1950’s economic environment. Perhaps the comparison with the 60’s when Asia was showing reasonable leadership in world markets as against the screaming melee of the Global markets. With new realities these frontiers now resume. Under the market structure – the question of who leads the world is the central question? What do we really expect exactly from the leader economy in Global markets, in the waning BRIC – not BRICS consortia, and with Russia poised to return to the fore of world leadership? A decade has not passed when Europe bonded by Stability Pact waffled at the peak or plateau of market saturation, some countries in Asia including India and China were heralding a new dawn for the sunlight world. Barely a decade ago, U.S enjoyed the attention of being the Super Power – the only Super Power in world markets, a place enjoyed since 1950 when it accounted for more half total Global output. Today, this is not exactly the case, for if we look at the new faces at the world summit brimming with joy at the new realities, the number of rich countries and rich peoples of world have doubled. Japan pinched from the problems of the 90’s following when the wowed the world is grudgingly making a comeback. Hung Kong is reaching into the frontiers of World Banking exercising their large reserve for much of the traded overnight Greenbacks – partly through London or through investment in major Sovereign Interest. A decade ago Brazil was not far-fetched but today there are hardly any go-with all that can exercise hints of exuberance with Brazil in its Portfolio. Much of Eastern Europe relied on daily ration of Bread a decade and half ago, but somehow, Europe is launch pad for several IPOs seeking healthier shore. There are international tigers pushing their envelop in world markets and even our dear seven sisters and brethren of sultans are seeking alternative to crude oil. The question is in the post crude oil economy of the world fostering health of credit – who leads the world? If year ends with half of the world markets uncertain about the direction of the markets especially the Commodity Market, how now can we proceed – who leads the world markets?
One of the dearest implications of world market is that all positive markets are in negative territory – but this is the zero bias convexity. When we emerge from the ashes of 2008 transformed through banks and national polices, we look forward a better world market when in all examples exercised, there are no such markets fluctuating saving perhaps a U.S corporate market shedding a few pounds from last year. It does not mean that it has momentum or lack momentum. It leads to one ultimate question about the problems of market direction under any circumstance when in all circumstance there are no factors committing to the markets. The last time we discover this problem was the entrance of Europe as a compact group into world market in 1999 to world market and China relieved on the corridor from the rest of world. The struggles of that year and the year after proved a poison for then President – George W. Bush – which some argued he that managed to eschew even in the face of September 11th 2001. Upon the competitive environment and global case of market crash, U.S spear-headed the transformation in the 2000s and narrowly won the acclaim for the Super Power in spite of world history. The reality was, U.S as an economic entity was way ahead of Europe as a total basket, including China and India collectively. This is not the case to the extent that the productive curve of these market engines grind slovenly to manufacturing almost with fracture, nearly without alters. It is unlikely to be expected that the chance for any society in the world to live up to its expectation or advance its economic prospects is when one economy ties itself too close to a more primary economy.
The success and decline of Japanese Economy, which now like China is in moderation, is due to the open market policies of the United States whose enviable economic policies is bankrupt in Japan. We may not fail to establish the fact that the creation of Euro as a decoupling effect through overnight Chicago was understudied before introduction, that the main problems associated with such exchange rate is the underlining market structure which make bank lending possible and recovery rate outside the national rate.
In 2014 unlike the decades following the removal of U.S dollars from gold Standard in 1971, there are fewer and fewer Open Market Economies in the world, and there is no denying that the New Economy of Global markets was not enhanced by the U.S actions in 1971. This period in the affairs of the world and global market is so vital that major players will do themselves some good to retain basic knowledge of what could in fact be called the beginning of 21st century Globalization.
Global economy now or anything in the future foster two principal issues of international trade fair, perhaps other issues, but in the case of fair competition from free market the global market was enhanced by the 1971 actions of the U.S government and therefore (1) and the other important feature of 1971 is the stability of Central Banks and Federal Reserve systems.
Put it bluntly, if a consideration between the basic DNA of any economy which is either growth and credit are combined by reason in this act in 1971, that these two compare and contract, and reasons are many to suggest that these two may not meet at any time, but from the actions of 1971, these two are economically placed in one basket.
The rate of credit determines the future market and positive economy, that the inflation is the root course of some of the problems associated with lending – given perhaps the issue of the rate of return when fixed income no longer guarantee adequate payment of dues, create bias for lending therefore economic circumstance outside the vintage of growth. And U.S as we have seen since 1999 shift from U.S Market and economy to China where cheap goods and alternative relieve fixed income workers of the pressure of an over-valued currency.
The shift is a way of arresting inflation and high price dislocations either from interference from local markets or other system dynamic or financial institutions that are capable of lending to minimum requirement for best available goods or credits, where as we experienced from the last 10 years that the determination of the federal government to create credit through IOUs suggest gaps in fiscal policy.
It also suggest new reasons to shift from the rate of returns, suggest new obligation or consumption function, suggest a new realities of increasing demographic, suggest high requirement of banks and hence the issue of lending or buying into a U.S reserve system largely buries the issue of credit. This action calls for a shift from the movement on the graph from one end of full employment to a plateau (that is duration of market and price reversal to bond) delays the dooms day for inflation and funds rate.
One case of this example is U.S in 2012 through 2015 and looking forward, there are open wide demands for higher economic vintage. There are new world markets in the light of today’s market, expressing their
There are high points of political economy or explains its limits, breaks, disappointment, triumphs of European version of capitalism or does not mean that it is different from those of the Americans or from mercantile cases in India and Asia, as with Japan, that Europe capitalism is different.
How different is a psychology asunder playing too close to the inevitability of a merger of the nations of Europe as if it was the circumstances of its political past, driven by war perhaps from war that its permeation of African Society is not central to its survival, it is symbolic of a nature of free market in the converse of militia and the predicament of acquired resources that has a home with its meteoric and its market force.
Perhaps as we have mentioned elsewhere, there are issues of political interest that show why Capitalism in Europe survived differently from what is perhaps available among the nations of the world.
The dictates of Europe society is expended to behave differently when the constituent parts are set to arrive at the attitude to stocks and bonds. Bonds for the fun of it a devil within the repayment process and the debt on which most transformations are made.
In all reality, the questions and the answers of a bond market and duration, why maturation is necessary is navigating and holding Europe and ECB is an intellectual item which emerged from constitution of the society – from petite kingdoms and societies willing to upper-end the resiliency of the raiders who in part driven by religion to westernmost ends of the continents; the Christian voyagers, the Muslims from different part of the world.
The feudal systems that ended the rule of Vikings – each celebrated history made most sinister by the collapse of the religious faith, the catholic church in dissent with a new protestant, the rise of protestant persecution and the wearisome travels into Asia via the Cathay pacific, via the Umbria trials and the Mediterranean, and into Africa as if they were new to its inlaid paths.
It is symbolic of the academic authority to rehearse the history of Europe leading to these problems. First the motivation that force the rest of us to succumb to the acceptance that the rapier psychology European merchants in some unguarded territories in Africa – both in 16th hundred and in the 19th century are constrictive omen peculiar with rise and fall of nations. It is also peculiar with the defense network system with lag emphasis on technology and problem of economic conversion of advanced attitude to money perhaps leads somewhere, where exactly we have Europe, at the cross-roads of valiance and dry economy that it seems the economy may or may not matured, may suggest that Americans economic conditions are not that different from these of Europe.
That the nature of capitalism is riddled in expansion and contraction – perhaps based exercised by banks in deeper azures of most economic nations and capitalist proponent, that perhaps, banks no less a factor as an arm of the financial government is a government in the economy – as no different from the rise and fall of capitalism which in the ends leads somewhere to a lasting impression of Europe in the light of recent exposures and Europe working with the parameters of a single currency and a stability- pact.
We may exchange the primitive vows – now and perhaps elsewhere – that if the story of Europe is a definition of world capital economy, there is something to behold about these consistent problem of debt in Greece and in some other nations in Europe, that it is perhaps a consequence of its future market that Europe may like Brazil and perhaps Russia and to an extent India, represent a new reality from old – how old and how new is what the question going may look to answer.
A special impact zone is outside the operational dynamics of the major companies, may be due to the idea of specialization or what they call in Europe ‘mimetic’ relevance of having all the production activity associated with any product at any levels of raw material, preparation, packaging and distribution and sales, to be rolled in mean regression – dispersion correlative.
That is the creation of special impact zone or the special Economic Zones, involved a degree of Pareto Optimal of satisfying one region simultaneously to another, for instance the Special Economic Zone of ‘SEZ’ of China under the Deng Xiaoping, who emphasized the growth of Shenzhen and parts of Shanghai before other parts of China.
The main events of this transition is that it involves the Banks but just ordinary banks but as we see in China, it involved the Development Bank, and in terms of Indian it involved the creation of ‘Reserve Bank of India’. The point of separating the Dual Role of a Bank, or a central Bank from main frame of events of these structures, is that a future is involved and that future requires a national guarantee even it means developing an area over another.
