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The Wise Investor - February 2010, Monthly Newsletter From Sundaram BNP Paribas Asset Management

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The Wise Investor: February 2010, Submitted by T.P Raman, Managing Director of Sundaram BNP Paribas Asset Management



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Wed, 02/03/2010 - 14:57 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

"The Wise Investor: February 2010, Submitted by T.P Raman, Managing Director of Sundaram BNP Paribas Asset Management"

Considering this newsletter came directly from the source, it looks like ZH is building some street cred. Congrats ZH.

Wed, 02/03/2010 - 15:29 | Link to Comment Chopshop
Chopshop's picture

a great read.

thanks TD & Mr. Raman, sir(s).

Wed, 02/03/2010 - 16:48 | Link to Comment JR
JR's picture

What does Globalization, financed largely by the American producer, mean to the average American? 

It means Goldman Sachs off-shoring your manufacturing base to China et al. and auctioning off America's infrastructure to foreigners; it means Bill Gates replacing Americans with H-1Bs and L-1Bs and L-1As; it means the Federal Reserve devaluing your assets to prop up its global enterprises; that the United States military now serves the international corporations; that Congress is replacing America’s workforce with an open-border workforce and forcing Americans to subsidize its low-corporate wages; that  the fruits of America’s freedom are being used to subsidize and grow Communist regimes.  It means, according to a mid-2009 Bloomberg report, a  “New Normal of 2% GDP Growth” for America.    

It means that Americans, to service their billionaire plutocracy, have to get “used to unemployment greater than 8 percent”; it means that “potential growth for the U.S. is no longer 3 percent, but is 2 percent or under”; it means “lasting shifts in consumer spending and savings”; it means “a new era of frugality… a secular change in household attitudes”; it means “less return to capital and less-remarkable equity returns”; it means America’s “financial system will be…re-regulated” (by the globalists); it means “growth in the U.S. to be slow…that ‘Investors will have to get used to “a 5- to 7-percent return game, not a 15- to 20-percent return game”,’  it means the “lasting effect of the recession may be a ‘markedly higher’ natural rate of unemployment.’”  It means savers will be exploited.

It means “Consumers are saddled with debt built up during the boom years.” It means that “as a percentage of net worth, household debt -- including mortgages…is at 27%, the highest on record”; and it means that the average house that “grew to 2,521 square feet by 2007” may have to go back to “average size…1,200 square feet”…as less income drives people “to devote less of their incomes to mortgage payments.” It means “the number of U.S. malls [will be] falling by at least a fifth and weak chains succumbing to bankruptcy.” It means we all will be “adapting to what will be a new normal.” It means, in short, that the financial insiders smashed  the American Dream in the biggest swindle known to mankind.

This is your “balance due” statement, America, from the international bankers.

Welcome to George H.W. Bush’s New World Order:

I hope history will record that the Gulf crisis was the crucible of the new world order. (August 1991 WH National Security Strategy of the United States, signed by George Bush)

And if you’ve got the time and want to get to know what GLOBALISM really is, take a look at Goldman Sachs, Wikipedia. Then you will know what happened to this great nation, to her resources, to her freedom, and to you… and why.

P.S. The link to "The Wise Investor" is experiencing difficulties...

Wed, 02/03/2010 - 17:36 | Link to Comment Anonymous
Wed, 02/03/2010 - 19:06 | Link to Comment IBelieveInMagic
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I understand that there is tremendous feeling of frustration with outsourcing. But, I think we are missing an important point here -- outsourcing is a feature, not a flaw of the current US dollar based global trading system. The US economy enjoys huge benefits of USD being the reserve currency in the form of very low cost financing, no exchange default risk (USA can always print away it's external debt unlike other countries that are forced to borrow in a foreign currency). 

Imagine being able to buy real assets such as oil and other essential commodities in return for a piece of paper with green ink that FRB can print endlessly! This has also enabled the US economy to operate as a welfare state for the last couple decades and US Congress has been able to spend virtually without limits on all kinds of entitlements. 

In exchange for tolerating this global structure, major commodity deficit countries like China, India, SE Asia has to have a way of earning surplus USD so that they can in turn buy oil and other commodities to meet their internal demands in addition to the raw materials used for exporting to the US/Europe (Additionally, they benefit from transfer and building of skills/capabilities). So, if the US wants to continue to benefit from USD being the reserve currency in global trade, then outsourcing will have to be tolerated. 

Of course, the outsourcing juggernaut can be stopped dead in it's track if the US agrees to an alternative reserve currency and the USD becomes just another currency. Already we are seeing such talks erupting at Davos and other forums. This will of course mean that US economy will be forced to learn to live within it's means just like other countries. So, there are pros and cons in each scenario. 

The reality is, you cannot hope to eat the cake and have it to!

Wed, 02/03/2010 - 23:45 | Link to Comment Anonymous
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