Globalization Check

Posted by Dr. James Canton on May 8, 2007 under Uncategorized | Be the First to Comment

The future of globalization will be based on the linkage of economies–both large and small. To appreciate the linkage of economies, consider the Shanghai Index’s drop of two weeks ago and the US and EU exchanges drop as a reaction. China sneezes and we all get colds? Our trend line shows robust linkage in these economies will make for stability in the developed and developing nations economies, a productive trend. Shanghai market

Chinese investments in the Euro and US dollar are stabilizing the global economy against other negatives, such as inflation spikes, housing bubbles, low productivity and escalating trade deficits. Growth offsets these risks, but investments are a win win for everyone. Stable markets with millions of consumers means China gets growth and stability. Very critical for all players.