Tag Archives: Globalism

A Grand, Simultaneous Financial Bust: Asian Contagion II






In the early days of open global capital markets, capital was attracted from the developed economies to the low-wage emerging markets with the promise of building a manufacturing base to export to the developed world. This capital surge was short-lived as capital plunged in at a faster rate than the new facilities could be up and flow revenues. It all came to a screeching halt when capital sought to repatriate. This was knowns as Asian Contagion. The year was 1997. The recent commodity, currency and stock market plunge are all related and known as Asian Contagion II, with the differences only in the details. Continue reading

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Tell Spellman It’s an Art, Not a Science

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At the moment, the question of whether or not the Fed should be raising interest rates has become a much ballyhooed event for which every investor, financial writer, and taxi cab driver has an opinion. It’s supposedly based on the best estimates of what money variables need to be in order to align aggregate spending with the upper supply side level that won’t trip off too much inflation. While the Fed would like to be scientific about it, the dramatic effects of globalism places the decision more in the realm of art than science and the Fed is not comfortable with art. Continue reading

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The Next Leg of Globalism






In 1993, there was a great debate carried live on national TV between then-Vice President Al Gore and Dallas entrepreneur Ross Perot. The issue was the pros and cons of going global. Equally unusual in terms of today’s political alignment was the right-leaning Perot (as the Donald Trump of his time) arguing against globalism. His position was that the lower wages abroad would result in a “giant sucking sound” of jobs lost to lower-wage countries. Well two decades later, there is no doubt who got it right. Continue reading

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The Knockout Punch: Has America Turned to Socialism?

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In the days following the election there was a numbing silence. It was as if the body politic was dazed by a heavyweight champion’s blow to the head. It staggered and sought clarity to understand what’s to become of our … Continue reading

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The Financial Multipliers of Globalism and Ross Perot’s Giant Sucking Sound

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Fed Chairman Bernanke testified last week that “the situation in Europe poses significant risks to the U.S. financial system and economy”. This indicates the extent to which financial globalism has become a controlling factor in U.S. economic and financial prospects … Continue reading

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