There is little doubt left that World economies are unraveling faster than Julia Gillard’s tax policies. The challenge has become that the 24 hour news cycle that fills our day and our desktops only brings attention to the problems and chaos and rarely the solutions to which are well beyond most, if not all of us.
A brief snapshot of the World Economic hit parade runs as follows; Europe and particularly the PIIGS, are systematically having their economic straw houses crushed by debt.
The US has a fiscal deficit approaching $14T with unfunded liabilities approaching $100T.
China, which appears to be an economic mirage in the global desert, has challenges that come with moving 600 Million people from an agrarian society into a full blown industrial revolution. China and the US are forever joined at the hip with China holding over $1T in US treasury bonds that should/could be downgraded to "Junk."
Japan has been doomed since 1989 and after two decades of treading water the last thing they needed was a biblical flood with nuclear fall out thrown in for good measure. And last but not least, the majority of the Middle East is in the flames of revolution. A revolution which has been sparked again by massive unemployment, corrupt governments and a tug of war between the Sunni and Shia Muslims who are still arguing over who killed Muhammad.
This chaos and the uncertainty in many areas of our working lives has many parallels to the Great Depression. There are however, parallels that few are talking about and most are failing to see. The Great Depression and the ensuing period was the greatest contributor to technology advancements in our life time. The radio, television and refrigerator where all developed post the GD with each changing our lives irrevocably ever since.
These advancements that still impact us today were borne from the fire of chaos, uncertainty and the unknown. Times of economic distress tend to germinate the seeds of capitalistic success. As Frederick Nietzsche observed more than a century ago, “You must have chaos within you to give birth to a dancing star.”
But before you go looking for the busiest free way to practice hand stands, it doesn't mean that people, take you for instance, can't come through this in more or less good shape.
The human spirit is pre programmed for growth and to solve and rectify situations of discomfort. Innovation is that response and our time to respond is upon us.
Investors should not lose sight of the myriad opportunities before them. There are a number of considerations in regards to investment alternatives that will equate to the radios and televisions of the Great Depression. We are in the midst of the greatest advancement in technology, medicine and energy the world has ever seen and like all booms and busts, will yield outstanding returns. However, doing nothing and waiting for the storm to pass will equate to sitting on the sidelines and left wondering what happened.
Regardless of your Investment pre disposition, purchase on the principle that its worth can be determined today and that its value is not just dependent on growth. In short, it makes money now. Like any successful business, you are either really good at one thing or you have a few irons in different fires. Pick your markets, due your due diligence, play to your strengths, have an informed future strategy, ask as many people as you need to but make up your own mind. We don't yet know what’s over the next horizon but a planned and informed approach will ensure that when you do reach the next summit, your view will be a profitable one.
The above information is supplied by Your Future Strategy.
Disclaimer: while due care is taken, the viewpoints expressed by sponsors do not necessarily reflect the opinions of Your Investment Property.
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