The World Is Curved: Hidden Dangers To The Global Economy

Submitted By RyanGraywacz
Words: 1544
Pages: 7
Open Document
The World Is Curved: Hidden Dangers to the Global Economy

The World Is Curved is an amazing book by David Smick, who describes the global financial crisis striking the world. The perspective in which David Smick writes about is through a liberal perspective. A liberal perspective can be defined as one who describes “the nature of an issue as it impacts society as a whole” (Petrick). In this book, was the theories of why the global market has been so volatile in recent years and what can be done about it through the eyes of David Smick; who was once a senior staff in the U.S. Senate and House of Representatives, as well as a leading macroeconomist advisor to some of the world’s largest hedge funds. Smick has a lot of experience with the stock markets, hedge funds, and the global economy as a whole due to his tremendous background in his governmental roles, as well as his roles in business such as being the CEO for Johnson Smick International. Smick constantly recalls upon his memory to describe what he believes are the causes for the high risk in financial funds today. He describes the world as “curved” because sight is very limited in the global market because there is always surprises and is becoming a dangerous place with no transparency. The global liquidity is making it even harder for financial analysts to predict what is happening because the amount of unknowns in the market are increasing and now more policymakers are relying more on their intuition/guts than information. He also describes the current global economy similar to the financial markets from 1870 to 1914 which set the stage for the Great Depression. The three main ideas behind Smick’s thoughts for such volatility in the financial markets are: the threat of China, Japanese housewives who have taken control of Japan’s savings, and that politics have unintended consequences when dealing with globalization. Smick describes his academic views of globalization by first describing a scenario of an event that occurred in his life, then using that event to make a valid argument as to why it effects globalization. The first argument he makes is that China is a huge threat to everyone’s wallets no matter where you are from. China is an “unpredictable force with the power to help or sink the world economy” (Smick 95). China becomes it’s own paradox because it is expanding due to unheard of enormous demands which causes jobs to be created and wealth, while on the other hand is becoming a financial bubble waiting to burst because of the expansion of the economy. It brings enormous benefit to the world economy but also the greatest danger for when it bursts because it will plummet global prices. Smick describes this with his own personal experience in China as a small group investment into China Cement. Despite some of the best people in the world in his group, the investment bombed due to corruption which China is very known for because the data it contains is unreliable. He learns that investing on something only based on trust in the accounting data is very problematic and realizes how many people fall into the same trap he did. China has no transparency yet, capital pours into the economy as a hotspot, and the leaders of China have no real power since it is a communist party in which a few hundred people have power and do what they can to uphold it. Smick also says Japan is skeptical of the Chinese economy, not because of jealousy, but because Japan was in a similar economic bubble in the 60s and is waiting for the new bubble to burst. The next idea Smick details is the Japanese Housewives and how they are affecting the global economy. As strange as it sounds, Japanese Housewives have a commanding height in the global financial system and very well affect the world economy. What started off as a hunt for greater return on savings in homes, it became one-fifth of all trading in Japan and now holds 1% liquidity which makes them one of the largest players in
Show More

Related Documents: The World Is Curved: Hidden Dangers To The Global Economy

Assignment: Pricing and Lg Essay

MARKETING MIX ANALYSIS THE CURVED OLED SMART TV NAME: HOLLY CHEN STUDENT ID: 26013428 TUTOR: FIONA HARE TUTORIAL TIME: TUESDAY 9AM LG (formerly Lucky Goldstar) Electronics Inc. was first established in 1952 and based in South Korea. Around fifty years later, LG became exposed to international competition and its brand name is now known across the world. This large firm produces a wide range of electronics, chemical and telecom products. Late last year LG released the Curved OLED Smart TV, which…

Words 2205 - Pages 9

Ukiyo-e and Kofun Period Essay

_______________________ achievements in Japan  Inside: ___________ hall, _______________ hall, library, bell tower, and 2 __________________.  __________________- a tower several stories high with roofs slightly curved upward at the edges  Still standing and the ______________ wooden structure in the world Buddhist Painting  Ex. Historical Buddha Preaching on __________________ Peak  Painting on __________________  ____________________________ greatest treasures that was preserved The Heian Period…

Words 318 - Pages 2

Master: Earthquake Engineering and Solid Lead Core Essay example

oil. When an earthquake strikes, the horizontal motion of the building causes the piston in each damper to push against the oil, transforming the quake's mechanical energy into heat. E.g. Parachute ride, Coney Island Replaceable Fuses In the world of electricity, a fuse provides protection by failing if the current in a circuit exceeds a certain level. This breaks the flow of electricity and prevents overheating and fires. After the incident, you simply replace the fuse and restore the system…

Words 369 - Pages 2

Essay On Japanese American Memorial

Louisiana Ave, New Jersey Ave. and D. Street. The landscaped site consists of a pathway bordered by curved and inscribed granite walls leading to an open central courtyard in which stands a bronze sculpture of Japanese cranes as well as a memorial temple bell. Initially conceptualized as a monument to the loyalty, patriotism and contribution of Japanese-American Veterans who served during the Second World War (1939-1945) in the highly decorated 100th Infantry Battalion and 442nd Regimental Combat Team…

Words 468 - Pages 2

The Scissors Essay

largest shears used to cut metal or to trim shrubs must have very strong, sharp blades. Specialized scissors include sewing scissors, which often have one sharp point and one blunt point for intricate cutting of fabric, and nail scissors, which have curved blades for cutting fingernails and toenails. What kind of people use Scissors? Scissors are mainly used in schools, offices, kitchens and homes. You use scissors to cut materials straight and to cut them in an easier way, then ripping or cutting…

Words 454 - Pages 2

Critique: Dance and Perpetual Motion Dance Essay

choreographed by Amy Querin is called Belonging and performed by Perpetual Motion Dance. The music was by Silver Mt Zion and the two performers were Michelle Moeller and Amy Nevius. The dance is about two same sex female lovers finding their place in the world and eventually with each other. The dance was has a story and therefore is not abstract, the idea of the story was that two people of the same sex found each other and began to help and love each other. At first they were both sad and wanted to be…

Words 888 - Pages 4

Essay on Ungodly Regime France

be understood in the same way the natural world can be understood; once understood, human life, both social and individual, can be manipulated or engineered in the same way the natural world can be manipulated or engineered; Human history is largely a history of progress; Human beings can be improved through education and the development of their rational facilities; Religious doctrines have no place in the understanding of the physical and human worlds. 2. The effects of the revolution took…

Words 392 - Pages 2

Student: United States and Roaring Twenties Essay example

consumer goods. The North American economy, particularly the economy of the US, which had successfully transitioned from a wartime economy to a peacetime economy, subsequently boomed. The United States augmented its standing as the richest country in the world, its industry aligned to mass production and its society acculturated into consumerism. In Europe, the economy did not start to flourish until 1924. In spite of the social, economic and technological advances, African Americans, recent immigrants…

Words 358 - Pages 2

Visual Arts Essay

Modern Art, New York, USA ! How can artist be a storyteller through their artworks? throughout history artist are known to tell stories through their artworks, their stories that could talk about various celebrations, ceremonies, rituals, world events, war stories and love stories. Many reflected back on their childhood the many times and experiences they have encounter, through this many of the artist take use of their message to take us on a journey more of a person flash back or maybe…

Words 1626 - Pages 7

The Viola Research Paper

The viola is a historic object. It has made a huge impact on the world of music because it has a dramatic effect on all genres of music. If you want to play this instrument, you will need to know all about its features,its strings and its shape. First, you need to know their string names. The first string is called the “A” string, which is the highest string. The “D” string is the second one, between the “A” string and the “G” string. Speaking of the “G” string, it's the third string out of the…

Words 332 - Pages 2