TOO MUCH MONEY

Miller, Rich (2005) Too much money BUSINESS WEEK,
7/11 59-64.

There is too much fluidity in the world market. That means too much money is being saved rather than being invested in new technology and production. In adjusted dollars, there is clearly one country is that is way in the red and that is the USA. The dollar is strong at the moment relative to the euro and the yen. However, it appears that the world is saving rather than investing, because there is an uneasy feeling about where the economy is going.

Generally savings is a good thing. Investing in the USA once meant that one was investing in new technology and production. Or it was spent on getting a growing economy growing even more. The money could also be spent on new innovations. However, it is beginning to dawn on the spot market or money exchange market that the USA is now using tons of money just to balance the budget. Whining about budget deficits means that many voters are turned off by such behavior and thus move to the party that tax and spends or spends and cuts taxes here in the states.

It is AS IF consumers and institutions are holding back waiting for something catastrophic to happen. Thus, if things get real bad they have money in the bank to make a go of it.

Lots of money means good things to a lot of economies around the world. However, this edginess may indicate that saving money becomes the pre-curser to a big bust.