|
November 19, 2008
Global ABCs
Written by Jeff Thredgold, CSP, President, Thredgold Economic Associates
This is the companion piece to Domestic ABCs of November 5
Anxiety—in great abundance across the global community
Budget Deficits—at record levels as the U.S., the English, the Europeans, and governments around the world spend $$ like there’s no tomorrow seeking to stabilize their respective economies and financial systems
China—don’t look now, but the Chinese just announced their own $586,000,000,000 economic stimulus package
 A Thanksgiving Special
Now through Thanksgiving, Jeff Thredgold’s A Parent’s Letter to My Children in School—with its timeless and simple wisdom about school, learning, and life—is available for only $5.95 (regularly $8.95). Attractive quantity discounts are available, and shipping is free on all orders over $29.
• Learn more or place your order of A Parent’s Letter
|
|
Dollar—rising against the euro, the British pound, and various other currencies in recent months as their problems rival our own
Europeans—no doubt laughing at the U.S. earlier this year for the enormous mess we got ourselves into. No more jollies at our expense as Europe now deals with its own recession and financial market stress
Finance Ministers (and their U.S. Treasury Counterpart)—perhaps more critical than presidents/premiers/rulers at this point in time. Who’s on the tube more than Paulson?
Global Economy—facing possible recession in ’09. The U.S., Europe, and Japan are now in simultaneous recessions for the first time since following WWII
House of Cards (Financial)—excesses regarding exotic financial instruments, subprime loans, skyrocketing home prices across the U.S. and Europe, and a never-ending accumulation of debt by domestic and global consumers/corporations got us into this mess. The deleveraging of this house of cards is a painful and scary process
Interest Rates—moving lower around the world in an effort to stimulate economic growth. More cuts are coming in Europe and the U.K., with one more cut a possibility in the good ol’ US of A
Japan—in recession again, following “the lost decade” of the 1990s. They just can’t seem to get their act together
Korea (North)—massive failure of this centrally planned economy is without question. Meanwhile, Korea (South) has enjoyed solid long-term growth
Libor—(the London Interbank Offered Rate). A formerly nondescript global interest rate is now newsworthy in the U.S. as trillions of dollars of adjustable rate loans are tied to it
Media—in my view, simply making a bad situation worse. Constant negativity by the Business Weeks, the Newsweeks, and similar publications around the globe have raised fear levels higher and higher
News (as in Bad)—see M. “Bad news sells newspapers” has been pushed to a new art form during the past year. If your only source of info was The New York Times, you would never get out of bed in the morning
Oil—A moment of silence please for oil producers such as Venezuela and Iran, dealing with severe financial stress tied to the plunge in oil revenues. Then again, maybe not
Poverty (Global)—one in three global citizens lived on the equivalent of $1 a day in 1993. Today, it is one in five. Progress, yes…acceptable, no
Quagmires—as before, there never seems to be a shortage. Today’s list still includes Afghanistan, Chechnya, Georgia, Iraq, the Sudan, and the Middle East
Russia—sky-high oil prices and strong oil production led standards of living higher for millions of citizens in recent years. The recent plunge in oil prices (and Russian stock values) has spoiled the party
Stocks—under pressure around the world. More pain is likely. However, if you buy the eventual global economic stabilization view, tremendous opportunities are (will soon be) available
Taxes—the President-elect has talked of raising income, capital gains, and dividend tax rates on the wealthy. Doing so in recession might not be a real good idea
Unemployment—rising around the world as thousands of U.S. and global companies trim payrolls
Volatility—pick any descriptor…financial market…economic…political
www—the World Wide Web continues to be both amazing…and cluttered with junk. Still, estimates suggest we have tapped only about 10% of the potential of the Internet. Global companies will save in excess of $1 trillion in operating costs during the next three years using it
Xports—one of the few American economic stalwarts during the past year. However, a stronger dollar and global economic weakness will hurt
Young People (around the world)—facing a rising tax burden in coming decades to finance the retirement years of Baby Boomers (and Boomers’ parents) if minor changes are not soon made
Zero Sum Game (which global trade is not)—any trade restrictions (protectionism) we impose on another nation are soon matched or exceeded by that nation. Democrats must be very careful
• Email this article to a friend
• Learn about econAmerica, Jeff’s latest book
|
|
Subscribe to the Tea Leaf
Like what you just read? Have Jeff Thredgold’s Tea Leaf emailed to you free each week. Subscribe today.
|
|
|
“Tea”ser
Failure is not an option. It comes bundled with the software.
“Tea”stimonial
”Jeff’s presentation on the economy was spot-on. Amidst all of the gloom and doom, it’s so refreshing to hear a leading economist who has a firm grasp on reality, but is also an optimist who still believes in the resiliency, ingenuity and greatness of America and her citizens.”
—Ryan Craner, President and CEO, Strategic Planning Group
• More testimonials
Invite Jeff Thredgold to speak at your next conference, meeting, or client function
If you like the Tea Leaf, you’ll love Jeff Thredgold’s live presentations. Jeff takes your audience on a timely, engaging, and entertaining tour of the U.S. economy and financial markets. Debunking some of today’s most common economic myths, he offers a clear picture of how the American economy is really performing and what that means for the future of your finances.
• Watch video clips of a Jeff Thredgold presentation.
• Download more information that you can e-mail to other decision makers.
• See Jeff Thredgold’s speaking calendar.
• Tell us about your event using our online form and we will contact you. Or, is there an individual in your organization you would like us to contact?
• Give us a call at 1-888-THREDGOLD (847-3346) to ask about Jeff’s availability and pricing for your event, or for any other information.
|
