Types of Capital Flows You Need to Watch

Any major deals affecting physical flows could move the currency market, because in order to carry out these agreements, currency would need to be bought and sold. Currently, most of the world's capital belongs to the United States, Europe, and Japan, while most of the world's cheapest labor if found in China, India, and other emerging nations.

Growth in the developing nations is also much stronger than that of the developed nations. Money has been moving from developed to emerging nations for years, so why do we seem to feel that economic pain in the United States more than we have in past years? One major factor that explains this new pain is the speed at which capital can flow.

Today, massive amounts of capital can move quickly around the world through electronic transmission many times in a matter of seconds. In addition, the costs of moving this capital from one country to another dropped dramatically over the past 20 years, as barriers to currency trading were lifted.

In addition to physical flows, you should also watch portfolio flows. These involve the buying and selling of stocks and bonds.

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Investment Consequences When the Aim is Growth With Greed and Power With Pride

The presentation was well done but the first third was quite sad as it portrayed what had been happening over these past years, as the head of the bank spoke of his aim and goal.

The bank was going to be number one and it would do what it could to get in front of everyone that was ahead of it. This was expressed in quite aggressive and arrogant terms. As I watched I just shook my head. It was doomed from that point onwards.

Here was greed and pride and sinful ambition all rolled into one financial disaster!

Yes, the head of the bank may have made a massive amount of money and pocketed enormous sums in salary and bonuses, but at what price!

The ethics and morality of the corporation was faulty. There was no sound foundation. There was no rock on which to build, and so that which is built on sand will one day tumble and crumble. Jesus Christ said this and there is no way any man can argue his way out of that inevitable consequence!

The love of money is a root of all evil and that has proved to be so very true in the investment and financial world over these past years. God has said that in His Word and that Word comes true, sometimes sooner rather than later, but there is way to be forgiven and reconciled and restored.

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