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G8 targets imbalances India and China will lead the global depression Dow can reach 4,000 by 2009 is this the third world war?
The worlds biggest economies on Saturday strengthened their commitment to reducing global imbalances. They want China and other emerging nations to make their currency flexible. Behind the scene, the G8 plans to take actions that will compell China, India and other emerging nations to play in level playing ground as far as global trade is concerned.
You perhaps did not watch it, the third world war has just started. Japanese Yen is tumbling. The G8 decided no official action against Japan. However that is not the case with China and other emerging nations. They want flexible curreny in China. A 20% revaluation in Chinese currency will create secular depression in China. A 20% rise in Yen will create another round of deflation in Japan. Indian firms are reporting recent strengthening of Rupees is creating blood bath in Indian exports to the Western nations.
If what G8 initiated is to materialize, India and China will real the global depression Dow can reach 4,000 by 2009. You did not watch something that started this weekend. Is this the third world war? How will the emrging nations like China and India respond. Interestingly, Bank of China awarded Tata of India a $100 million Information Technology contract rejecting proposals from American and European companies! The third world war is in the trade front it will create the global depression.
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