Is US the the most dominant chain of the Eco(nomy)sytem?
The title might draw some serious laughter in the wake of the current conditions prevailing but ,it is born out of the same situations.I don't have the answers to this obvious question but i decided to put it here anyways.
This post was the result of a conversation with a rather intellectual friend of mine where other than the usual rant,we came to discuss about the much talked about book by C.K.Prahalad- "The future at the Bottom of Pyramid".Now,both of us haven read it more than the excerpt,but then it was enough to start a discussion;-0
Now,the whole point of finding the future at the bottom of pyramid i.e. the developing countries of the world or a new coined BRIC's only signifies the developed ones directing their investments here.But,then you ask yourself,who is/are the economic superpowers.The answer is a no-brainer
US of A for the most and then UK,Japan etc.
Now,as soon as i mentioned US , this friend of mine asked me to wake up from sleep and read the newspaper."US suffering one of the worst recessions of all times", "US in a serious financial crisis".
I wasn going to back down and went ahead with the rest of the developed country list ,but then was i fooling myself.
No country has so far been able to keep themselves aloof from the financial mayhem in USA.We have seen all economies struggling to hold their ground, be it Japan,UK, and who not.Most of the banks here are either biting the dust or selling out to the larger ones.
India is no exception though the trade pundits are confident that India is the most insulated of them all.The stock markets though are telling a different story all together.
But,getting back to the title ,this clearly suggests that US is the pillar of the global economy,though a shaky one at that;-)
But why??Aren all the other economies self-sufficient enough to hold their own.Or,there aren enough financial brains churning out enough ideas to cause a paradigm shift in other parts of the globe.My previous post on US Economy proves a testimony to the fact that there is nothing special in the US to make it the Financial Godfather that it has become.
Frankly,i don't seem to have answers to this but i will be glad to find some reasoning behind this.
Or,we will never be able to achieve the vision Mr.Prahalad tries to achieve through his book.
Have answers or anything you want to contribute!!!Please share
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5 Respones to "Is US the the most dominant chain of the Eco(nomy)sytem?"
You have been tagged :)
October 8, 2008 2:27 AM
Hi
Liked your blog. The views are well informed and so personalised.
Thanks for visiting mine and do drop in again.
October 9, 2008 7:06 AM
@moneymanagement
Glad you liked the content here.As far as the personalisation goes,i don have a choice since i am not a master at finance/economy:-)
anywas will definetly look forward to urs.
Will be glad if you provide your wordpress blog url.
Seem to have lost it:-)
October 9, 2008 10:01 AM
i think question itself would have been a jumbled answer( if your remove is at the beginning and put it after US)........
and may be still it holds but the world is facing at present the Winds of Change......
But still U.S is regarded as the world's biggest DEBTOR and China as world's biggest creditor::
They say whne the DOW sneezes whole world would catch cold.
To an extent it is true also....america for decades has been a luxuriant sort of ecnonomy which feeds on credit.....free market and capitalist regime( which is in shambles now adays)...this has also to do with the dominant position of $ as deposit reserve currency ...imagine an economy of 13 Trillion Dollars......13 times the size of our economy...definitely it would call the shots....What markets are facing today is a result of some unregulated system which has run into excessess....last time it happned in 1907 when J.Pierpont Morgan intervened and then 1908 was one of the best years for U.S Stock markets....thought peopple are comparing it to the G.E.D but the scale of G.E.D was far bigger....unemployment rate soared to 25% at that time.....and industrial production plummetted to its lowest levels.....
The thing is that now along with U.S there are other big powerhouses also ( U.K , Japan, E.U, China) ....but still U.S matters a lot and in past 8-9 months it has been proved...
Regarding Prof. C.K Prahlad's " Fortune at the bottom of the pyramid" ...This book is not about finding alternative to U.S but to find consumers which are just above Poverty line or low middle class...it aims at making organizations more Lean, developing new business strategies, finding new marketing methods to hit in till nwo uncovered areas......it challenges organizations to produce goods which are affordable to majority population in 3 world countries and at the same time maintain quality.......
it says that CSR does not mean squandering profits and doing charity...it means Volume play....
i am sure that U.S would for some time still remain the powerhouse of World Economic and financial system..as it is a guzzler.....
October 9, 2008 12:41 PM
Saw you on the Grizz link exchange and would love to do a link exchange with your site..
In fact a link within a post would b all the more better for both of us. So Do let me know if you are interested.
here is my site
http://Stockmarketforbeginnersguide.com
October 15, 2008 9:30 AM
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