Published at: globalstrategyproject.org
October 15, 2008
Globalization has lifted us to a new level of global economic integration. Instead of a “decoupling” of the world’s regions and business cycles, the opposite has happened. Financial and “real” economic integration has increased, and now even the bubbles and their bursts travel the globe in sync. Unfortunately, it has also become obvious that globalization is not a cure for shortcomings in regional market frameworks, global imbalances, or bad policymaking. Many pundits are therefore asking for new global institutions and worldwide supervision. But instead of hunting for lofty goals after a lofty bubble, it seems to be the much better response to learn from globalized companies, who started to follow a strategy of “THINKING GLOBAL AND ACTING LOCAL” long ago.
The Paradox of the "Real Economy" versus the "Financial Economy"
October 13, 2008
Financial engineering caused the mess The REal economy feels the pain Collapsing markets and confidence increase the pain Only Government Intervention Can Solve the Problem Sell the Gold and Buy Stocks is the Best Advise
Global Crisis has Global Repercussions
October 13, 2008
Thje current global crisis will ineivtably have global ocnsequences. Chief among them will be a severe diminution of the U.S.'; financial leadership as global markets are clearly registering a vote of no confidence in the Administration. And due to the massive sell off of values the domestic energies of governments will be concentrated on internal economic recovery rather than on following Washingotn's agenda. None of this will change even after he new administration takes office in January. The ensuing situation thus betokens a fall in U.S. global leadership capacity and sets the stage for more and more widespread internaitonal challenges to American policies across the world