Aliens in Human Form

Aliens in Human Form

Locally, well not much has changed over the past week or so– we’re getting a 1.5 Billion Vatu Convention Centre, courtesy of China. A likely white elephant, in my view and all the while sorely-needed money for health and education goes wanting.

Sometimes, I swear, I think there must be something to the “there are aliens amongst us in human form” theory because the actions of the policy-makers and law-makers here defy human logic.

Looking abroad, I guess the first point to make about the past week is that watching the markets has been as about as exciting as listening to the Antartic weather forecast for tomorrow (COLD!). All very “Ho hum”, you might say.

Apart from Japan’s, the others have all experienced small daily pluses/minuses with the end result that all ended “up” for the week.

What could have affected the markets in a manner that drove them in the same direction?

It’s all been to do with “money” or rather, the lack thereof.

JapanJAPAN. Currently has a national debt that is 24 times the tax revenues. Their new Prime Minister, Shinzo Abe, has declared a new strategy for their economy. You guessed it – grease the wheels of the money-printing presses and let ‘er rip! This, from “The Guardian”, U.K…… The interest rate on Japan’s 10-year government bonds is now less than 1% – the lowest in the world, despite a very high level of government debt and annual budget deficits. Indeed, Japan’s debt is roughly 230% of GDP, higher than that of Greece (175% of GDP) and nearly twice that of Italy (125%). The annual budget deficit is nearly 10% of GDP, higher than any of the Eurozone countries. With nominal GDP stagnating, that deficit is causing the debt/GDP ratio to rise by 10% annually.”

One response from angryboy that had what I reckon is a good take on the issue, said –

“The Japanese have been trying to “kick start” their economy for years but all they seem to be doing is proving that Keynesian “stimulus” efforts work just like any other artificial stimulant by providing a short lived boost that does nothing to provide any sustainable, positive changes and leaves the country ever deeper in debt.
The one positive note is that there are plenty of lessons on what not to do for the West to learn from”

U.S. President Barack Obama says Congress has to raise the debt ceiling because they already spent the money.” 

Oh dear! And this from the leader of the largest economy on the planet (sigh).

CHINA. A different story to remind you about. There is continuing discussion and speculation about the Yuan gaining increasing status as a “currency of choice”. The facts speak for themselves and this CBNC article “Yuan as a World Currency? Getting there Fast” is but one of many snippets of the “facts” out there in mainstream and academic media.

PHOCEA SAGA. We’re watching the events and news surrounding this issue and will keep you posted. Is this the straw that will break the back of the Kilman government?

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Comments
  1. Talitha says:

    Reblogged this on Ontdek Melanesie.

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