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Honest Information, Profitable Trading

Durudarshan - Investment Analysis

My Blog


$57 Trillion! That's a nice bit of money.

Posted on August 6, 2015 at 7:36 AM Comments comments ()
Fifty Seven Trillion Dollars, that is the amount of money laying in the coffers of the international corporations, according Luisa Bojesen, in her conversation with Angel Gurria.

It is useful to know this fact, straight from the Organisation of Economic Co-operation and Development Director.

It is pure co-incidence, that this same figure is the quantum of capital that the U.S. has issued into the system since 1971, when under President Richard Nixon the U.S. virtually abandoned the Bretton Woods agreement, bringing into being freely floating fiat currency.  This is currency without the underlying backing of gold reserves, which up until then all nations needed to have to back the quantum of capital they could issue as their own currency.

This freely floating fiat currency can be said to be the triumph or even celebration of capital and capitalism, since it has fed so many billions across the world, and will continue to do so into the future.  It is the virtue of this same capital under the name of Quantitative Easing that has established and maintained expenditure of over $6.45 Trillion since the Debt Ceiling raise of August 2011.  The stockmarkets have gone up, people have found jobs paying them well, they have lived well, travelled, been to good schools, sent youngsters on sabbaticals overseas and so on.  People have bought houses, good cars, established businesses which are doing well and continue to feed many employees and families, etc. 

On reflection, it seems President Nixon did an excellent turn, and likewise the Obama administration have followed suit, bringing the nation from the collapse of 2008 to the economic Recovery which is growing into Prosperity in some parts of the U.S.A.

The next stage, to help create Prosperity, will be I would suggest for the corporations to use the mountains of capital under their guardianship to create jobs, fund training and education, form charitable foundations to give to causes who otherwise remain forgotten, and invest in development and growth in nations, especially in Africa and Asia, who is turn will become huge markets for their products.  Capital is a wonderful thing, it creates wealth when it is passed around.

The U.S. has been fortunate, they have the credibility of a superpower but also their easing techniques have been perfect.  Similar experiments in Zimbabwe turned that nation into a basket case, and similar techniques (perhaps rushed) have probably resulted into the downturn in China (who I feel sure will study and tweak their system accordingly, to maintain stability of growth and development into the near future).

I shall be pleased to hear your views and comments.

Kind regards,

may be freely distributed, with acknowledgement.