Posted to The Age (11/11/2011) on 11/11/2011 at 1:25 PM
Commenting on "Markets Live: Aussie stocks trim gains"
http://www.theage.com.au/business/markets-live-aussie-stocks-trim-gains-20111111-1na5v.html
If Rome was not built in one day, how could Italy? Besides, it will cost a lot more in money and time to rebuild what has been "destroyed" by its ageing population, bureaucracy, corruption and tax-avoiding black market. With that in mind, how can anyone believe that this bad wind will blow away in just a matter of a day or so, and have so much confidence in pushing up share prices in such turbulent market?
Anything happens in Europe can affect economy worldwide. It is evident from other reports that China export has slowed. It is myopic to think that internal consumption will keep China economy going just like before. If it does, it is only temporary, because China needs a lot of money to look after a huge population.
Australia must also be cautious about continuous outflow of monies to overseas through online shopping and outbound tourism. Once consumers parted their monies, there will be less for internal circulation required for job creation and tax revenue.
Debt makes the world goes round, but debt is virtual money and must be repaid at some point in time. Prosperity created by debt is temporary, unless it can be repaid sooner by real money and not by another form of debt.
Commenting on "Markets Live: Aussie stocks trim gains"
http://www.theage.com.au/business/markets-live-aussie-stocks-trim-gains-20111111-1na5v.html
If Rome was not built in one day, how could Italy? Besides, it will cost a lot more in money and time to rebuild what has been "destroyed" by its ageing population, bureaucracy, corruption and tax-avoiding black market. With that in mind, how can anyone believe that this bad wind will blow away in just a matter of a day or so, and have so much confidence in pushing up share prices in such turbulent market?
Anything happens in Europe can affect economy worldwide. It is evident from other reports that China export has slowed. It is myopic to think that internal consumption will keep China economy going just like before. If it does, it is only temporary, because China needs a lot of money to look after a huge population.
Australia must also be cautious about continuous outflow of monies to overseas through online shopping and outbound tourism. Once consumers parted their monies, there will be less for internal circulation required for job creation and tax revenue.
Debt makes the world goes round, but debt is virtual money and must be repaid at some point in time. Prosperity created by debt is temporary, unless it can be repaid sooner by real money and not by another form of debt.
