Sunday, August 7, 2011

Interesting Times

So the ball has started rolling... The US got downgraded to a AA+. Felix Salmon is one who said it well.. about time :)
The downgrade happened after market hours, I think. Monday ought to be super fun but then, the way markets have the ability to function it might be a non-event. The odd thing about this downgrade is the very real possibility of the US not getting back its AAA in at least the next five years or so. It feels nice to see the mighty US being shown that other countries don't appreciate what it is doing. But that is the odd thing about our interesting times; the US doesn't seem to have two options... Let go of the stimulus and let the economy find its grounds again or provide a stimulus which in essence is not one. The income disparity along with the qualitative disparity amongst people has changed the way economies function. It is time for the US to re-base itself. I firmly believe that China does not stand a chance in the world economy with its subdued minds and oppressive policies.
The global economy is about to see its slow grind to a halt where exchange mechanisms are re-assessed. Resource shortages and income/ well-being inequalities will sour relationships. A significant war is at hand.

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