Every generation needs a revolution - an ENTREPRENEURIAL REVOLUTION.
During my long early life as businessman/entrepreneur, I have always discounted economic forces since I am not an economist. I have focussed on opportunities only and niche markets, as entrepreneurs are wont to be.
However with the US Debt Limit Crisis, I was terribly worried. Truly, that item is more worrisome than l. Japan Tsunami, the Sep ll, attack. The magnitude of what could happen to the world, and to the local economy is unimagineable mind boggling. I am not a doomsday prophet but maybe experts may find logic in what I think could happen. Here are things that could possibly happen:
l. US currency would fall in value vs other currency. The exporting countries would not be competitive (It will be cheaper to manufacture goods again in in USA, or USA would export again. But exporting countries would be devastated (Japans electronic co exporting to US stock value fell)
2. If US can't pay interest on its debt, if would be in default. US investors and lenders would run for cover, and dump US securities and other instruments at a discount!! Holders of US financial instruments would see the value of their wealth disappear (a much poorer world?)
3. Since our world currency is pegged to the dollar, the world economy as a whole would chill.
4. But most of all, US cant buy goods and services on credit and must pay in cash (which it could no longer print) and Americans will experience poverty they have not experienced for a long time.
This event could be far devastating than a nuclear attack.
We should be grateful, this was averted today, the deadline as Pres Obama and the Congress came to an agreement. But the financial market were not at ease and there were decreases.
Am just wondering why locally, reactions and planning on this by economic leaders/managers was just this week?
During my long early life as businessman/entrepreneur, I have always discounted economic forces since I am not an economist. I have focussed on opportunities only and niche markets, as entrepreneurs are wont to be.
However with the US Debt Limit Crisis, I was terribly worried. Truly, that item is more worrisome than l. Japan Tsunami, the Sep ll, attack. The magnitude of what could happen to the world, and to the local economy is unimagineable mind boggling. I am not a doomsday prophet but maybe experts may find logic in what I think could happen. Here are things that could possibly happen:
l. US currency would fall in value vs other currency. The exporting countries would not be competitive (It will be cheaper to manufacture goods again in in USA, or USA would export again. But exporting countries would be devastated (Japans electronic co exporting to US stock value fell)
2. If US can't pay interest on its debt, if would be in default. US investors and lenders would run for cover, and dump US securities and other instruments at a discount!! Holders of US financial instruments would see the value of their wealth disappear (a much poorer world?)
3. Since our world currency is pegged to the dollar, the world economy as a whole would chill.
4. But most of all, US cant buy goods and services on credit and must pay in cash (which it could no longer print) and Americans will experience poverty they have not experienced for a long time.
This event could be far devastating than a nuclear attack.
We should be grateful, this was averted today, the deadline as Pres Obama and the Congress came to an agreement. But the financial market were not at ease and there were decreases.
Am just wondering why locally, reactions and planning on this by economic leaders/managers was just this week?
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