Japan's nuclear counter attack tsunami vs US dollar; this ends period of prosperity and economic stability for US

Nation building via learning and being the best in business

For years it is said that Japan, ever since the Plaza accord has propped up and provided cheap money for US, and propped up  the latters economy  for decades:    1.  low if not zero interest, 2.  cheap yen vs US dollar.  And were also buyers of higher yielding US treasuries.

But lately Japan has taken steps on its economy and fiscal matters that others seen as an attack on US dollar or economy.  (It could be because of Trumps tariff which is hurting Japan's export.!!)

      1.  They have hinted on raising bond rates (bond pricing hitting 1.9%)

      2.  They have stopped buying US treasuries

      3.   They are dumping US treasuries (almost $200+ billion for a quarter)

This affects:

     1. Carry trade  trades involving borrowing cheap yen and investing in higher yielding stocks and 

          treasuries.  It is estimated to be between 12 -20 trillion dollars.   Its unwinding

     2.  May affect liquidity

     3   US economy stability as no one would continue to buy US debt

     4.  US quality of life.  This sort of interest rate subsidy would  end and jack up housing and

           credit card % rate

All the while the environment of US economy is not at all conducive 

The ongoing trend of de dollarization:

    1.   Declining importance of US as reserve currency

    2.   De dollarization by BRICS, USSR, UAE India in their trades

    3    End of Petro and Euro dollars

    4.   US huge $37 trillion in debt

How will these affect the Philippine economy.?

Shall we weather these economic storms?

What are our countermeasures?

In this economic environment, how will you  plan?   How will you strategize?   Its vastly different from the world we were born and grew...It will make your head spin

           

How the gold and bitcoin reset (double talk for currency devaluation) will erase US $37 trillion debt and cause financial difficulties for most citizens?

Nation building via learning and being the best in business

How will this impact your business.   This is going to be completed in 2027.    

Here is the plan:

1.  President DT under the Economy Emergency Plan has all ready signed an EO protecting the Bitcoin  US has about $200 billion of this which were bought and confiscated in the drug raids.    US has 8000 tons worth of gold valued at $42.22 dollars in US treasury books amounting to $200 billion 

2.   The govt will revalue the ff assets:

       gold from $42.22 to P20,000/ounce which will increase  value to $5 trillion and bitcoin to $1,000,000         each from current market value of about $100,000 which will revalue the bitcoin to  $2 trillion.

       The $37 trillion will now be backed by 20% of total govt assets and the debt of $37 trillion will be but erased.

        Brilliant eh

But such move will:

      1.  devalue the dollar

      2.  gold can be confiscated

      3.  wipe out the value of savings and retirement including salaries and wages

      4.   there may be hyper inflation

Who will benefit:

     1.  The US Fed

     2.  The US govt  it will now appear stronger and financially sound

     3.  Politicians  - they dont have to raise taxes or worry about the massive spending deficit they are doing.  or worry about paying the massive $1.2 trillion in interest alone to the $37 trillion debt.  

     And this happening right now as:

     1.  There is pending crash of the financial market just like in 2008 because of overvalued stock

     2.   The unravelling of the estimated $20 trillion carry trade (investments in stock and other financial instruments by borrowing cheap Japan Yen and investing in other financial high yield financial instruments. 

    This post foresees difficulties and economic difficulties in USA especially for its 300 million citizens.  Its a great pain to solve its difficulties.  (And many foresee that a collapse of finances could lead to the demise of the empire as it happened to UK and Rome before)   While PHL is still far away the awesome and massive of plunder of the PHL treasury could cause the same pain.  Its time to execute and punish the plunderers from executive and legislative branches of the govt

    

Retail apocalypse likely to continue for the next 7 years, shuttering 17,000 stores? Grim landscape for retailers

Looking forward to the future of business

Rizal Philippines
December 2019

From Business Insider - Retail apocalypse continuing

                                     This shuttered mall symbolizes the difficulty in this business


About 8,000 retail stores have closed shop this 2019 which include Gap Stores, K mart, Sears.  Most hard hit are electronic and clothes store.

The trend is likely to continue for the next 7 years.  The reason:   on line shopping e commerce  On line shopping which is  at 16% now will be at 25% in 2026 says UBS.  All ready Amazon has increased its sales by $38 billion which is the equivalent of 7,000 brick and mortar stores.   American on line spending is roughly $5,000 per family

Why is ecommerce on the  rise:  
1.  Less hassle of parking and walking around the store;
2.  More warranties:   free return of merchandise available
3.  You can chat with the store on the  products (not Chinese sites)
4.  You spend less effort (walking) and time going through their products.

This is made possible by convenient payment options:   credit card, Pay Pal, Pay Maya and convenient delivery system (hehe tell that to Lazada which has a number of misdelivery, wrong delivery, missing delivery) especially if products come from China.

Ayala which has formerly focussed on brick and mortart mallss realizes the changing trend and has bought an on line retailer:  Zalora to its portfolio.  Those who still are into brick and mortar store may see the need as their sales plateau and /or taper off (much worse decline)

This post is bearish on restaurants and retails:

Retail:

1.   Strong competition
2.   Paper thin profits
3.  Thefts (shoplifting) and rotting inventories (BO) or out  of trend stocks abound
4.  High labor costs

That tops up threats from competition -  e commerce

Restaurants:

1.  It deals with wants which is very volatile.   Customer wants change constantly
2.  Tastes of consumers is trendy -  Customers may want chicken now but tomorrow it
      may be salad, or vice versa
3.  Thus, Jollibee in US sees failure with its Smashburger in the US, or BK closing many of its stores
      Those that flourish like KFC in the Philippines are innovative in their menus to fit the changing wants
4.   Restaurants are in the food eaten out of the house category.  There are still food eaten in the  house category, and in difficult times,  families will scrimp on  eating outside the house.  Go back to basics

Those with long term prospects business are still in:

1. Finance
2.  Real estate
3.  Transportation
4.  Energy
5.  Communications

This will force rethinking on business investments and innovation.   Which this site professes.  They are huge spending sprees to build brick and mortar stores.  Time to reflect as we see the current landscape of retailing and food eaten outside the house

FMCGs and pharma  are now shifting to ecommerce platforms to cover all their bases.  Medicines, milk and other grocery items are available on line:

Benefits :

To the consumer:

1.  Convenience
    1. Shopping is done on line at the comfort of the home via android phone and even anywhere
    2. No traffic and parking head ache
    3. No waiting at check out counters and dizzying crowd

2.  Lower price
3.  Even deferred payment
4.  Delivery service at your door step.  No need to lug your purchase hail a cab which becomes rare on these occasion

To the retailer
1.  No bricks and mortars investment (except for DC as by Lazada and Ali Express - to control delivery
     and inventory

2.  In general, there are no inventories;   most transactions are flow through, and hence
3.  Little or 0 working capital requirement

To the manufacturer;
1.  Access to the existing customer of the  e commerce platform
2.  Minimal or little delivery to the store, less logistic requirement
3.  Less or zero collection from retailers (Direct to the Customer business model)

Will China overtake US as the world's largest economy in 2014

Ateneo Professor on Entrepreneurship

From the World

 


Philippines |  May 1, 2014

I watched CNN and Al Jazeera today predicting that China will soon overtake us as the world's top economy this year.  US has long since held the title after it overtook UK in 1872.  But despite that, the parity of living standards will still be behind Western standards.  Because, per capital wise, the large population of 1.36 bn will take the sting of that bigness

This is according to the World Bank International Comparison program.

China has contributed roughly 25% of the world's global growth since 2008

One can doubt the veracity of the data:   1.  On one hand, the civil servants sometimes inflate their data so that they get promote.  2.  On the other hand, there is the grey economy and many unreported revenue by vendors, in sex trade and other illegal activities.  So the economy may be bigger than reported.

The rapid growth has resulted in rapid degradation of the environment including air quality, even in Beijing

US has lagged behind in growth rates vs China and in real terms

ehi

US Homes can be without power after December 30 2013

Ateneo Professor on Entrepreneurship

From  Angel Nexus

American Homes could be in the dark because of shortage of Uranium. 31 states in the US are powered up by nuclear energy.  And most of the uranium comes from dismantled 20,000 Russian warheads.

Demand from US nuclear power plants is 43 million pounds of uranium.  US can supply only 10% of this.  The last supply of uranium from Russia ends two weeks from now.  And there is no way by which the supply grid can be replaced soon?

Russia is no mood, especially USSR President Putin, with his criticism of US exceptionalism is in  a mood to renew or extend the supply contract.  What will US do next?

What is the crisis, the opportunity?

Well Fargo emerges as worlds top bank in terms of market cap

Ateneo Professor on Entrepreneurship

Repost from Quartz

Wells Fargo has quietly emerged as the worlds biggest capitalized bank at  $236 billion, stealing the thunder from Chinas ICBC (Industrial and Commercial Bank of China)  And all the while we though that all US banks are weakened by the US financial crisis.

Wells Fargo takes much of its income from mortagage origination which makes its vulnerable, advising rich clients, and lately investment banking

Fwd: U.S. Energy Stocks Have Been Soaring - Circle Star Energy Corp.

With all the bad news on predicted financial doomsday for USA, hyper inflation, this feed is very much welcome news!
US oil energy company are growing (because of fuel prices).  And USA is predicted to surpass USSR and KSA in oil
production.

But it is like finding many fish with a broken net and boat without fuel.  The economic and monetary structure must be set
in order.

---------- Forwarded message ----------
From: Moneynews.com <newsmax@reply.newsmax.com>
Date: Tue, May 1, 2012 at 7:41 PM
Subject: U.S. Energy Stocks Have Been Soaring - Circle Star Energy Corp.

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