We could have also headed our article : “No, the inflating of the Chinese stock exchanges isn’t a bubble”. The Shanghai stock exchange’s exuberant 100% increase in one year is certainly frightening, but it reflects a real dynamic (or rather a correction) of the country’s economic development. One really has to wonder how real money (Chinese savings) invested in real needs (infrastructure, social systems, decontamination, Silk Road…) could create a bubble.
Our team wants to pick up on the inconsistency that there is of being afraid of the financial centres’ gain in value in the obvious economic development zones like China whilst, for years, the whole world must marvel at the Western stock exchanges’ numbers, in particular in the US, in complete contradiction to the economic fundamentals of the areas concerned. Yes, the US stock exchange is in a full bubble (as well as, to a lesser extent, Japan and Europe). But the freeing up of the emerging nations’ dynamics, equipping themselves with infrastructure tools according to the size of their revenue streams, is on the point of absorbing all these bubbles to finance business development on a scale never seen before. The global crash won’t happen therefore because “planet finance” has only just been born.
Sub-parts of this article :
- Chinese stock market : a well-prepared opening
- Silk Road : China has just launched a global New Deal
- The BRIICS and BAII are releasing the power of emerging economies
- From globalization to globality: the plumbing problem has been solved !
- An open but not wide open world
- Towards a Western crash… or not
Our team has decided to make public the part of the Perspectives section named ” From globalization to globality: the plumbing problem has been solved !”
From globalization to globality: the plumbing problem has been solved !
It’s only up to the West to grasp this great opportunity. On one side there is the insurmountable mountain of US problems : an economy which is going into recession once again, insecurity which is reaching its highest, the poorest 80%’s incomes which have already been falling for the last two years, a never-ending drought in California, the spectre of a new government shutdown in November with the possibility of payment default into the bargain, an overheating stock market, etc.
Figure 5 – Incomes by quintile, between July 2012-July 2013 and July 2013-July 2014. Source : Bloomberg.
On the other side, there are the BRIICS’ promising prospects in a rationale of global collaboration.
Our readers well know how worried we were last year over the risk of the West shutting down on itself. Over the last three months we have again picked up the thread of our anticipations over the emergence of a multi-polar world, the challenges laid down by its organization, the obstacles in the way of its implementation and the pitfalls to its development as well. With the Iranian agreement, the world has suddenly become exciting again… because the problems on display are just so many challenges to rise to and no longer death