NP Stimulate this

[Terrance]

jbor wrote:
> 
> lycidas2 at earthlink.net wrote:
> 
> > Of course, the best way to stimulate the economy is get people to go
> > shopping.
> 
> There have been and will be economic repercussions on a global level too.
> Tourism is suffering, and with the Western holiday season coming up this
> will hit hard in some of the smaller national economies. Swiss Air went bust
> last week.
> 
> best

OH Yeah, it's going to hurt many economies far more than the USA. 
During a recession in any Nation State the poor suffer more. And during
global recession the  poor Nations  suffer more.  There are many
variables to consider, some developing nations will continue to grow,
mostly because of the fundamentals of their respective
economies--productivity gains, catch up phase economics, leap frog
technological advantage and the advantage of backwardness,  but overall
this recession will hurt poor nations most. The need to secure boarders
and increase insurance on property on travel on people will restrict the
free flow of money, ideas, products, services. The anti-globalists have
won the first battle. Money will stay home. Why invest in an oil
project  in Afghanistan when you can invest in McDonalds or Coke?  I
know, the returns on McD or KO will be moderate while the potential for
high returns in Afghanistan are enormous, but right now people want
security not high yield return. Why invest in developing economies when
you are only going to lose your money? 

I see Japan had to put up some military support for the war. 
You bet, they get 78% _% demand GDP) of their oil (they are a volcanic
chain of islands with no natural resources) from the Persian Gulf, most
of it from SA. The USA gets around 7-8% of its oil from the Persian Gulf
(SA, Iraq, Kuwait). 

Economies that depend on a lot of tourism are particularly vulnerable.
I'm thinking of small economies in America, like Costa Rica, but also 
economies like Greece and Ireland, both of which have been doing quite
well, thank you. 

As I said when this thing hit, they feel our pain. 
While the USA is not a global economy, it is a domestic economy with a
regional trade 
component--Canada and Mexico, other Nations like Japan (8%) depend on
USA consumption and will be hurt. Also, in the developing debt market
things could not be worse. This move by the USA to end 30 year bond
issuance will also add some strength to the developing debt market,
which was headed down the toilet.