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Saft Says: Maybe it's not such a small world after all

Tuesday, October 23, 2012 - 03:27

Oct 23 - Reuters Columnist James Saft says globalization and harmonized economies may not be as cozy as first believed as recent ructions disrupt trade and money flows.

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First columnist James sat. So what you're saying about globalization being inexorable. A look at a series of recent stories. -- Chinese Japanese territorial spat and it's real economic consequences. And a drop in global trade and cross Portland. -- may keep coming actually less tightly. And a lot more economically and this idea that globalization will go on horror that the world will continue to become more and more economically. With an ever more complex global supply chain increasingly international operations banks. The heart of most mainstream. According to this view of the world. Yeah out of power globalization to create more trade -- more -- and more crops. Means that over time governments and people come to exert its influence over their own national -- Given up some power in fact in exchange for hire are. My work over the long term short term is looking awful lot -- Japan on Monday showed some truly. Awful trade orders showing a -- 10% and exports. Underneath it was a massive on exports to Japan this district and almost certainly. Tensions over group disputed islands which are. Anti Japanese protests and tax businesses is thought to be Japanese and even car. Japanese exports to China which fell 14%. And exports of Japanese cars like 45%. And motorcycles 31%. Chinese tourists to Japan also. And probably. To be -- this game it's in part about weakness in the economy in -- But it is undoubtedly about something else Nationalists. Which by their nature really unpredictable and not at all economic -- It's just Asia. Global economy looks like it's in the middle of a really rare outbreak decline entry. This is driven by weakness in the Euro zone and elsewhere. Also I think probably helped along by some changes in post crisis attitudes about race and natural. On this is something that happens only about once. Every ten years so the fact that we're getting another declining global trade on the back at the 2009 recession. Recent data to show that there's actually been a decline in the amount of cross quarter runs. And a historic. Biggest quarterly contraction on record global into one. -- again. About the Euro zone in part. People worried about landing in this scene landing in the recent -- -- lines. But it's also really just about a change in and it. National regulators don't want their banking systems to lose all their money in Orange laces air. Operatives and now this means that they're putting pressure on them to do less global. Maybe that policy but it's also going to be probably pretty -- Idea that the world's -- smaller and smaller flatter and flatter race probably yes no wrong.

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Saft Says: Maybe it's not such a small world after all

Tuesday, October 23, 2012 - 03:27