QUOTE(cherroy @ Oct 22 2011, 04:11 PM)
Economy slowdown is not because lack of oil.
Economy slowdown is because people are spending beyond their meant last time, now payback time.
There are enough oil around to support the economy.
We don't face any shortage of oil even during oil peak around USD150.
There are enough untapped oil for the rest 40-50 years without much problem, just how oil price dictated whether people interested to dig out those untapped marginal oil field, deep sea one.
Also,
Economy slowdown is not because lack of money around.
Economy slowdown is because people have no confidence to put the money into work.
Trillions of cash are sitting at sideline, in bank account that yield zero interest.
Even Apple alone has 70+ billion cash reserves, and many other big corporate has significant cash level, even locally, most well run company has ample of cash level generally.
Print money is to push the economy going, but corporate only willing to expand if they have confidence about the future growth.
And confidence cannot be built instantly through money printing.
Money printing inflated price and pushing hard on those idle cash to do something, in theory go to buy asset, investment, or expand the business due to cheap funding, but we have the result, corporate still want to have cash sitting idle due to previous fear of 2008 crisis.
good point you made bro! Btw, so the conclusion is does it safe to do gold investment? Economy slowdown is because people are spending beyond their meant last time, now payback time.
There are enough oil around to support the economy.
We don't face any shortage of oil even during oil peak around USD150.
There are enough untapped oil for the rest 40-50 years without much problem, just how oil price dictated whether people interested to dig out those untapped marginal oil field, deep sea one.
Also,
Economy slowdown is not because lack of money around.
Economy slowdown is because people have no confidence to put the money into work.
Trillions of cash are sitting at sideline, in bank account that yield zero interest.
Even Apple alone has 70+ billion cash reserves, and many other big corporate has significant cash level, even locally, most well run company has ample of cash level generally.
Print money is to push the economy going, but corporate only willing to expand if they have confidence about the future growth.
And confidence cannot be built instantly through money printing.
Money printing inflated price and pushing hard on those idle cash to do something, in theory go to buy asset, investment, or expand the business due to cheap funding, but we have the result, corporate still want to have cash sitting idle due to previous fear of 2008 crisis.
Oct 23 2011, 12:47 PM

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