Posted on 12/30/2008 2:41:26 AM PST by TigerLikesRooster
The collapse of financial globalization …
Posted on Monday, December 29th, 2008
By bsetser
The last six months — if not the last year — logged what felt like a decade’s worth of financial news. So perhaps it isn’t surprising that swings that normally would attract an enormous amount of attention have gone almost unnoticed. Like the near-total collapse of private capital flows.
Both private capital inflows to the US and private capital outflows from the US have fallen sharply. They have gone from a peak of around 15% of US GDP to around zero in a remarkably short period of time …
The fall in private flows over the last four quarters has been much sharper than the fall in the US current account deficit. The current account deficit continues to hover around $700 billion (5% of US GDP). Financial globalization — the growth in private cross-border flows, and associated rise in private inflows and private outflows — doesn’t seem to have been as central to the ability of the United States to sustain large current account deficits as some thought back in 2004 and 2005.
The preceding graph is based on the BEA’s balance of payments data, scaled to US GDP (the quarterly data was transformed into an annual series by calculating a rolling 4q sum and the sign on private outflows was reversed). I did adjust the latest BEA data in one way. From q2 2007 on I subtracted “private” purchases of Treasuries from the “private’ total. The last survey of foreign portfolio holdings — which revised the data from mid-2006 to mid-2007 — basically re-attributed all private purchases of Treasuries from private investors in the UK to the world’s central banks. My adjustment thus anticipates the revisions that are likely to follow from the next survey.*
(Excerpt) Read more at blogs.cfr.org ...
Ping!
Ok, what does this mean?
Tell me if I’m wrong but, the way I see it, globalization is the necessary vehicle for the COMPLETE control of our personal and nation’s wealth.
“In 1848, Karl Marx said: “Free trade breaks up old nationalities ... in a word, the free trade system hastens social revolution.” Henry Kissinger said that NAFTA represented “the most creative step toward a New World Order.”
http://www.modernhistoryproject.org/mhp/ArticleDisplay.php?Article=FinalWarn08-6
bttt
Thanks for the ping.
A “Read the authors comments to questions at bottom of article” BUMP!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.