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MY OPINION:
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MY OPINION:
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Is it possible that the worst of this crisis be over?Financial Markets were mostly positive in this respect, with the lower volatility index underlining all the optimism (see the story below please). I think however that the damage is done and a recovery is still very far from our global regulators reach, notwithstanding the fiscal and monetary expansionary steps they have taken!
What is your conclussion from last week's selected news (below)?
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---As I have publicly stated before (radio, TV, magazines, newspapers, conferences), the biggest problem to the world from theChinese Yuan is not the managed depreciation succesfully achieved until now (which is a a fact and in line with this nation's government mercantilistic plans )but....the risk of an eventual macro-devaluation (China being the bubble of the global bubbles),once the productive and financial markets "fatal attraction" to this utopian economic experimentends" (socialism, autocracy, and efficient markets never mix for long)......One country, two systems... Absurd! ...I don't want to be misunderstood: China's people (1,300 million +) deserve a great place in the world, probably one of the first 5, but before solidly achieving this goal it has to fix some structural problems such as the undeniable lack of democracy and respect for human rights, semi-closed, state-controlled capital markets, ambiguous free trade advancement and doubtful embrace to capitalist ideology (which should mean an adamant defense of fair productive competition and consumer sovereignty). This doesn't mean that social fiscal policies must be stopped from protecting its people's well-being but to make them more rational with free markets economics....Finally (an) a straightforward relationship with the international community to achieve political and economic stability all over the world should help it a lot to get its citizens to reach the GDP per capita they deserve and not the disappointing one they still have these days (notwithstanding the enormous progress accomplished in the last 3 decades!)......Onecountry, two systems... Absurd! ...
Please see article below **** "China's Yuan: Hot Money Running Away!..****---
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---The "Euro" warning signs are multiplying. Last week they came from two respectable sources, one was the International Monetary Fund and the other from Mr. Soros (who in foreign exchange has an extraordinary reputation, if sometimes a very controversial one. This week another one, that of Mr. Sarkozy (French President) is added to this anxious chorus. Let's keep ourselves alert to monitor the unfolding of events regarding this currency, which being world's 2nd most important, the risk implication (do we need more?) to global financial stability is notorious.-- ( And you may wish to read the respective articles posted on this same "blog", thank you. J CNN)---
----I'm absolutely sceptical that China economy could have a lasting rebound on the recent stimuli packages (though strong they were indeed).
----But I'm not pessimistic at all with respect to the strength of the UK economy. The pound pounding is (much like the mexican peso, once due respective size and development differences considered) nothing more than the expression of the global financial....."Perfect Storm" ???
Mail:
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juancarlosnavanava@gmail.com
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Please read the concerning articles in the archive section below! -The Mexican Peso at Risk?....My opinion in the next sections.....Also throughout this "blog" you may want to check my stance regarding the yen, yuan, and the Euro.--
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---As I have publicly stated before (radio, TV, magazines, newspapers, conferences), the biggest problem to the world from theChinese Yuan is not the managed depreciation succesfully achieved until now (which is a a fact and in line with this nation's government mercantilistic plans )but....the risk of an eventual macro-devaluation (China being the bubble of the global bubbles),once the productive and financial markets "fatal attraction" to this utopian economic experimentends" (socialism, autocracy, and efficient markets never mix for long)......One country, two systems... Absurd! ...I don't want to be misunderstood: China's people (1,300 million +) deserve a great place in the world, probably one of the first 5, but before solidly achieving this goal it has to fix some structural problems such as the undeniable lack of democracy and respect for human rights, semi-closed, state-controlled capital markets, ambiguous free trade advancement and doubtful embrace to capitalist ideology (which should mean an adamant defense of fair productive competition and consumer sovereignty). This doesn't mean that social fiscal policies must be stopped from protecting its people's well-being but to make them more rational with free markets economics....Finally (an) a straightforward relationship with the international community to achieve political and economic stability all over the world should help it a lot to get its citizens to reach the GDP per capita they deserve and not the disappointing one they still have these days (notwithstanding the enormous progress accomplished in the last 3 decades!)......Onecountry, two systems... Absurd! ...
Please see article below **** "China's Yuan: Hot Money Running Away!..****---
---
---The "Euro" warning signs are multiplying. Last week they came from two respectable sources, one was the International Monetary Fund and the other from Mr. Soros (who in foreign exchange has an extraordinary reputation, if sometimes a very controversial one. This week another one, that of Mr. Sarkozy (French President) is added to this anxious chorus. Let's keep ourselves alert to monitor the unfolding of events regarding this currency, which being world's 2nd most important, the risk implication (do we need more?) to global financial stability is notorious.-- ( And you may wish to read the respective articles posted on this same "blog", thank you. J CNN)---
----I'm absolutely sceptical that China economy could have a lasting rebound on the recent stimuli packages (though strong they were indeed).
----But I'm not pessimistic at all with respect to the strength of the UK economy. The pound pounding is (much like the mexican peso, once due respective size and development differences considered) nothing more than the expression of the global financial....."Perfect Storm" ??
The fact that Mr. Obama becomes the official leader of the richest, most powerful and ideologically most influential nation(in terms of Democratic Advancement, Immigration Background, Human Capital, Innovation and Corporate Governance) in the World is, incontestably by itself, one of the most wonderful events in Human Rights' History. Let's hope he will be up to the awesome task as well, if just? for the sake of global security and a healthier international economic development.----MR OBAMA: I WISH YOU THE BEST!---
-----Will China's government decide for us what is "vulgar" in Internet and what's not? Will Google and MSN react somehow? ----
And now Japan, the 2nd richest global super-power has decided to spend a lot of money to try to save itself from this grave systemic financial crisis and its would-be dire effects on the domestic economy(notwithstanding the fact of already having the highest sovereign debt ---250% of GDP among its well-to-do counterparts)and in coordination with other nations the World's. ----How will it get out of this mess?
-----G-7, G20 LEADERS: DON'T MESS WITH THE MARKETS!------THEY ARE TOO COMPLEX FOR YOUR PRIMITIVE REGULATORY SKILLS. DON'T MAKE THINGS WORSE! ACCEPT THE BLAME AND "NATURAL EFFECTS" OF THE BUBBLES YOUR ABSURD RULES CREATED IN RECENT YEARS(PERMITTED ARE SOME LIMITED MEASURES TO SOFTEN THE HUMAN IMPACT OF THIS CRISIS). LET THIS GLOBAL PHENOMENON DISINFLATE BY ITSELF("CREATIVE DESTRUCTION", REMEMBER YOUR COLLEGE NOTES?) -----DON'T MESS WITH THE MARKETS G-7, G-20 LEADERS!
-----I'M SENSING A LOT OF CONFUSION AND SEEING MANY DESPERATE AND PANICKY ACTIONSAMONG THE WORLD'S MOST PROMINENT ECONOMIC POLICY MAKERS.I TELL THEM THIS: STICK AND TRUST TO WHAT YOU HAVE LEARNT IN COLLEGE:RESPECT THE MARKETS WHILE YOU TRY TO SOFTEN THIS CRISIS' EFFECTS ON PEOPLE(DEFEND YOUR CONVICTIONS VS YOUR BOSSES, THESE BEING MINISTERS, PRESIDENTS OR PMs., CONGRESS OR PARLIAMENT, MEDIA, ETC.OTHERWISE RESIGN)RECOGNIZING THAT THESE ARE TESTING TIMES, THE COUNTRIES THAT ARE GOING TO END UP BETTER POSITIONED FROM IT ARE THE ONES THAT REJECTED THESEEMINGLY EASIER BUT ABSURDLY COSTLIER SHORT-TERM POPULIST SOLUTIONSAND EMBRACED STOICALLY THE MOST SENSIBLE ONES. THUS, IF YOU ARE SINCERELY COMMITTED TO SEE THE WORLD OUT OF THIS TROUBLE BUT DOUBTFUL THAT SOME PAINFUL THOUGH RATIONAL COURSE OF ACTION IS THE BEST DECISION TO MAKE, THENTRUST YOUR ACADEMIC INSTINCTS (INTELLECTUAL INTUITION WE SHOULD SAY AS EMPIRICALLY YOU FACE UNKNOWN DEFYING PECULIAR CIRCUMSTANCES) HOPEFULLY FOUNDED ON THE ADVANCEMENT OF HUMAN KNOWLEDGE WHICH HAS BEEN THOROUGHLY EMBEDDED EVEN IN YOUR HUMBLEST AND MOST BASIC MODERN ECONOMICS TEXT BOOKS DURING THE PAST DECADES AND..... MAKE THAT DECISION! YOU ARE RIGHT NOW RESPONSIBLE FOR THE WELL-BEING OF SO MANY HUMAN LIVES. PLAY IT SMART! MARX, KEYNES ARE DEAD AND A WHOLE NEW AND BETTER WORLD IS WAITING FOR US!---- DON'T MESS WITH THE MARKETS!.... J. CNN
Dear Mr. Sarkozy: The21th century World needs more market freedom, not more regulation. Your present reading is wrong.This Big Global Financial Crisis has been caused by too much government interference of short selling and derivatives (you are "shooting the messenger") and by supporting inefficient enterprises (US Giant Mortgage Firms Freddie & Fannie). Currency market intervention(China) is plainly out of place in this new order of things. Free trade of goods and services is a "Must"(Doha),Yes Mr Sarkozy, many Leaders of your generation by being "closet" protectionists or overly fearful of what they don't understand, have made the consequences of this crisis bigger than they would otherwise have been and by hysterically crying out for more global rules constraining financial globalization to other "emerging" hysterics you are not helping at all to straighten (the effects) them up but making them worse and longer lasting.Centralized Economy Management will never work.The World is too complex for that: Consumer Sovereignty will and a truly free Global Financial System the only sensible tool we have!------Juan Carlos Nava-----