International bigwigs gathered in Malaysia to discuss the economic horizons for the biggest continent. Predictably it centered around rising food and fuel costs. Personally I believe that these rising costs are largely the result of the natural rise in demand worldwide--it's a good sign! It means that more people want better lives, they have wider desires and opportunities than they've ever known and prices get driven up satisfying this growth of personal wealth. Sure, there are other factors but largely this rise of costs is perfectly natural and, while not desirable in itself, not indicative of bad times to come. My view is perhaps peculiarly rosy but it'll take time for the markets to digest this growth. The downside of this current economic stagnation is that the impatient citizens of the world (re: fatass white Americans) will demand their governments do more than governments are actually capable of. Raising taxes and tariffs (what else can a government do really?) is not the answer to the current problems--it will only raise prices further! It will not save anyone now or tomorrow and will wreak havoc in the developing world.
The Asians will drive the future economy but only if the American markets allow them to develop positively. Is my model the correct one? We'll see, but I foresee an eventual upswing that will dwarf any period of economic growth civilization has ever seen.
World Economic Forum on East Asia
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