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Sunday, May 13, 2007

'Too Much Like 1929'

Bernard Ber, an investment representative with CIBC in Toronto, has published an article that for its superior analysis deserves attention. (This originally appeared in Guest Commentary at PrudentBear.com but at time of writing has gone missing; this may or may not have conspiratorial implications depending on your temperament; I give an alternative link below). The opinion expressed, needless to say, is hardly the official position of the Bank and one wonders to what extent it is a view shared within the corridors. This writer obviously knows all those numbers and concepts on the currency exchanges that give us all such headaches (well, me anyway).

Of great interest is the thesis that the relationship between China and the USA today is a replica of that between USA and Britain on the eve of the Great Depression.

"The two major players in the world
financial system at that time were the United States and Great Britain. The
United States was the emerging industrial power, whereas Great Britain was the
mature and stagnating industrial power. ...

Now fast forward to today, and what
you see is China as the emerging industrial power and the United States as the
mature and stagnating industrial power."

2 comments:

Conrad Smith said...

Too much like 1929 that is written by Bernard Ber, is an excellent,
very informative article.
The writer sounds as a highly intelligent individual, who has a
unique insight and a deep understanding of the financial world issues.
What an individual of such
a calibre doing in CIBC. He would be better off, working for a more
credible financial institution.


Conrad Smith

ross carington said...

Bernard Ber's article is the exact
mirror of the state of the global financial markets, since 2006
to date.

His article is superlative, and
very accurate.

Ross Carington.