Monday, May 26, 2008

The physics behind the "M" society.

A Japanese economist describle the society today we are in as the"M" shaped society. Basically the poor and rich are represented at the edge of the letter "M".The richer or poorer you are, the more you are represented towards the edge.From the letter we see that the middle are shrinking.Today it may be the case of 10% of the world population holding on to 90% of the world's property and 90% of the population are getting only the left over 10% of these properties.The middle class is diminishing.

In U.S 10 trillion US dollars are needed to maintain social sercurity and 62 trillion for medicare.That is about twice the amount of the value in global stock market,which have a approximate value of 36 trillion US dollars.Togerther with trade deflict, it is most likely the reasons involve behind US falling dollars.Well many people still believe in working hard and saving hard and live below their means.However many fail to realise that they are losing their money gradually,becoming poorer and poorer each day.Value of different national currency is falling along with the global reserve dollar.People's value in their bank account is directly proportional to the rate of currency drop.So it's not a very good idea to save under deposit scheme.Due to the rising oil price and global chained inflation,I believe it is now the best time to invest,espcially in stock market.The rich gain rich by exploiting crisis but the poor simply gets poor by being exploited by crsis.Simply think of Buffet's Berkshire Hathaway,his insurance business topped as the hottest stock since US recession.Why?Because people tend to see him as a person who can gain something through crisis. Not lose something due to crisis.The fear hidden within us cause us to be exploited.People need to "wake up from the industrial age idea" so as not to get into the middle class slope.

If one is to continue in the industrial age idea,it predictable that one is going poor,regardless of qualification.Even the income is not going to decrease,the price of living is definetly going up.The resultant effect will simply be people becoming poorer and poorer.What I read up just now really gave me a shocked.In zimbawe,the goverment just printed new note of half billion.The value is just equal to $2.65 SG dollars.Enough just for two loaf of bread.Indeed it makes some one feel rich...

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