A Designed Economy – 2015

mC:t    2015.03.08    #makeCalgarytalk

 

What will happen to the potential for investment if the world’s strongest ‘open economy’, strongest markets (IE NYSE) and most powerful democratic government – with a great military – decides to change their approach on their current financial premise?

Janet Yellen, could any day increase government prime lending interest rates by just a fraction of a percent. Between 2013 and 2014 the financial leaders tried to reduce the contribution of stimulus money into the US economy, however, with financial concerns regarding big gains on their economy and year end worries as oil beginning to be a cause for an industry wide market loss.  The US government passed more stimulus legislation.  2014 – was one of the most prosperous economic periods on paper in the US, while the struggling people continue to struggle.  If there is more possibility of stimulus, there may be more major market gains – similar to the profitable Santa Clause rally, December 2014.  Thus, if oil is still at a record loss in 2015, what does this mean for Calgary? The future will unfold on its own, which is quite obvious. However, if the world economy experience increases in interest rates – there could be a caused enormous inflation on a world that is thought to be experiencing the so called effect of a ‘Great Recession’ – starting around 2008.

So with enormous futures in oil and petroleum base product, the effect will be felt across the globe, Calgary included.  Calgary’s service industry is struggling because they have very close ties within their economy to the oil sector’s highs and lows.  Thus – when, or if – oil prices inflate there could be very beneficial gains in the Calgary economy, (including the design world).  Looking outside Calgary, for instance, if we look at an industrial area which does not profit with oil gains, and may in fact has potential losses because of increases in expenses in their petroleum related operating costs. Such major market sector for example those found in Ontario, BC, Atlantic Provinces could experience some of the greatest potential economic losses that are probable.  This may be because the recent decrease in operating expenses has typically not been able to equate the financial similarilties to the savings gained by drop in the world oil market.

So, if the finical leaders in the world do any of the following; ex. An increase interest or prime lending – even slowly – on the trillions of dollars of added wealth – what will happen is the future will unfold itself. We can only hope this is done in a logical manner… However; no one knows – we just hypothesize.

In conclusion, seek financial advice, do not take the future into your own hands and never stop being wise with what you have at stake in the financial world.  Best wishes more potential gains, and, be careful with your wealth. A thought to leave – we ‘are born equal’ and all have the potential to take our lives where we design them to take us.  The richest person in the world, could be the person who can make the best deal with what they have been given. They may have the most at stake or also – in a way – they could quickly lose value or be ‘calculated’ as worthless. Life has dealt you something good, so play your cards when you have them… and seek registered financial council.

‘CNN Money’ – ‘Stock Market Jobs Fed Rate Hike’ – By Heather Long –

[ http://money.cnn.com/2015/03/06/investing/stocks-market-jobs-fed-rate-hike/index.html?sr=fbmoney030615markets0430story ]
What do you believe?…

VW

 

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