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BY JAMES OH

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LETTING GO AND MOVING ON BY JAMES OH

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MINDSET SHIFT: EMPLOYEE TO ENTREPRENEUR

MINDSET SHIFT: EMPLOYEE TO ENTREPRENEUR
BY JAMES OH

Wednesday, May 29, 2013

THE MAIN CULPRIT OF THE GLOBAL INFLATION


THE MAIN CULPRIT OF THE GLOBAL INFLATION

Have you ever pondered who is the main culprit that caused high Global Inflation? I do. I am always pro-active in predicting what is the likely main cause of it. This may be due to my nature of "active thinking" of the likely possible scenario in the future despite
knowing that I can't control the external factors. However, what matters most to me is what should I do now  and how to response to such a situation so as to take ride of the waves to be stronger, tougher and better.

As such, I write to share my humble views and its implications so that you too are more ready to face these coming challenges. Therefore, it is critically and crucially important to know who is its main culprit and its rationales behind it. Before I share it further, I need to warn you to exercise your discretion if you choose to read further. This is my  personal humble view only.

You may have read or heard from China's leaders of their recent counter arguments in defending their position when they were accused of "manipulating" their currency. i.e. undervaluing their Yuan currency. On the surface, it may seem logical and sensible. However, when you dig further, the argument may not hold in view of the USA's easy action of printing their currency to address their already mountain high Trillions dollars debts to the rest of the world. That figure is extremely unhealthy and scary in view of their in balance of their current national GDP growth in term of debt growth. Check all these ratios yourself. No doubt that this economy is the driving force of the global economy, so to speak.

Indirectly, their action may indicate to affirm the China's repeated voice of requesting the US to be more responsible for their own currency in view of the current status of being the most preferred International Reserve Currency. The next question that arises is "whether this currency will lose its glory and shine like in the past?"

Based on my personal findings and observation, the answer to the question is in the resounding Yes. I am not wanting to scare you, but this is the clue I obtained from the Chinese leaders' statements that the US dollars is the thing of the past. In line with their argument, they have taken other drastic measures such as cut down their national reserve in the form
of US currency, enhancing the barter trade with their trading countries and also using their own currency with other trading partners.


From the above discussion and explanation, I hope that you are able to grasp and understand the entire scenario. Be ready to face this greater challenge in the near future. Be ready and find out "What are the best alternatives for us to ward off or reduce these forthcoming risks?."

Before I end, be honest to ourselves and listen to what the sound economists say on the issue of printing more money. Wouldn't this action be like "devaluing" its own currency if the GDP growth is very much lower when compared to the quantity of currency it produce.

Worst still, what if the rest of the world will also response in this same direction based on this fact discussed above.

I hope you give it deeper, serious consideration and share out your views in this regard. This is because it has significant, relevant and material impact on our wealth indirectly; one way or other.


Through caring and sharing, we strive to be excellent.


James Oh

http://my.linkedin.com/pub/oh-james/12/a11/29b

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