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THE GLOBAL
ECONOMIC FORCES:
WHAT INVESTORS
MUST KNOW?
Part 1: Singapore And The Global
Economy
Singapore is a small, but
very prosperous, city-
state conducting
business within a global
economy over which it
has no co...
To invest wisely, it is
not enough to know
what is happening
locally, Singaporeans
must have a firm
understanding of the
f...
Because it will be those
forces that ultimately
determine the direction of
the Singapore stock
market, the Singapore
prope...
While the global economy
is far too complex for
anyone to fully
understand, it is possible
to grasp the most
important asp...
The global economy is in
crisis because so much
credit has been created
around the world that it
cannot all be repaid. The...
Therefore, a relatively
small amount of credit
defaults could cause a
systemic collapse that
would destroy most of
the wor...
To picture this situation
more clearly, we can
picture the global
economy like a giant
rubber raft – but one that
has been...
Floating on top of the
raft are all the asset
classes (stocks, bonds,
commodities and real
estate) and the world’s
populat...
The income of the
seven billion people is
insufficient to service
the interest on all of the
debt that has been
created an...
Another problem is the credit that is continually
being destroyed by defaults causes holes in the raft.
And that’s where w...
Success Resources Pte Ltd
Main Office: 10/11 Pahang Street, Singapore
198611
Toll Free: 1800 7822 377
Direct: +65 6299 467...
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The Global Economic Forces | Richard Tan Success Resources

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Understand the puh and pull factors that will affect Singapore

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Transcript of "The Global Economic Forces | Richard Tan Success Resources"

  1. 1. THE GLOBAL ECONOMIC FORCES: WHAT INVESTORS MUST KNOW? Part 1: Singapore And The Global Economy
  2. 2. Singapore is a small, but very prosperous, city- state conducting business within a global economy over which it has no control.
  3. 3. To invest wisely, it is not enough to know what is happening locally, Singaporeans must have a firm understanding of the forces driving global economic developments.
  4. 4. Because it will be those forces that ultimately determine the direction of the Singapore stock market, the Singapore property market, the value of the Singapore dollar and trade volumes.
  5. 5. While the global economy is far too complex for anyone to fully understand, it is possible to grasp the most important aspects of it at any one time.
  6. 6. The global economy is in crisis because so much credit has been created around the world that it cannot all be repaid. The modern financial system is highly leveraged and poorly regulated.
  7. 7. Therefore, a relatively small amount of credit defaults could cause a systemic collapse that would destroy most of the world’s savings. That very nearly happened in 2008.
  8. 8. To picture this situation more clearly, we can picture the global economy like a giant rubber raft – but one that has been inflated with credit instead of air.
  9. 9. Floating on top of the raft are all the asset classes (stocks, bonds, commodities and real estate) and the world’s population of seven billion people. Unfortunately, the raft has become fundamentally defective
  10. 10. The income of the seven billion people is insufficient to service the interest on all of the debt that has been created and keep the raft afloat.
  11. 11. Another problem is the credit that is continually being destroyed by defaults causes holes in the raft. And that’s where we are now – on a sinking raft. Continuation on Part 2
  12. 12. Success Resources Pte Ltd Main Office: 10/11 Pahang Street, Singapore 198611 Toll Free: 1800 7822 377 Direct: +65 6299 4677 Fax: +65 6295 2441 Email: info.sg@srpl.net Website: http://www.srpl.net
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