Wednesday, April 21, 2010
Spirit of Reagan, Thatcher Doomed: HSBC Economist
In the link, Stephen King, Chief Economist at HSBC, proposes that the extreme growth and expansion in China and India have slowed down the continuous improvement in standard in living. This being said, the US government and the European governments have now relied upon on big government and this is now the norm. King says that the financial markets will depend more and more on government regulations and politicians. He finishes by saying that market forces are being manipulated outside of markets control and will continue to do so.
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2 comments:
Very interesting article addressing the reality of the current global economy. As evident from the capital markets collapse in the United States, China and India's continued development continues to support the notion that the US' position as the economic superpower continues to wane. I thought the fact that China would be attempting to consume equivalent to the world's current oil production by the middle 21st century was very interesting and I am curious to see what directions the American and European markets take compared to the Indian and Chinese as they continue to recover from the economic recession. In the end, there may be the emergence of a new world power.
I think it will be interesting to see if people start moving to countries like China and India for job opportunities and how these governments have allocated their funds. As for King's prediction of the economy depending more on government regulations and politicians. It's already happening.
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