160. "The World is Curved..." by David M. Smick

"The World is Curved: Hidden Dangers to the Global Economy." by David M. Smick is a very informational book about Globalization. Smick reveals how today's risky environment came to be -- and why the mortgage mess is a symptom of potentially far more devastating trouble. The big-money country (Russia, China, Saudi, and Dubai) sovereign wealth funds are stealing the show from the U.S. Europe, and Japan in e financial deal-making, and in many cases, bypassing entities like the World Bank and IMF to generate its own loans in exchange for commodities (oil, gold, silver, iron, steel, etc.). Been wondering what is driving up commodities? Hoarding by China and Russia. We have already heard about those countries building additional reserves of Gold and Euros instead of Dollars. Gee..what do you think they are anticipating? What happens when they remove needed commodities from the world market, diminishing the supplies while the demands continue to grow exponentially? Right on -- prices go up. Now, when commodities go up, which way does the dollar go? Right again, down. If the dollar is going to keep declining, which way does gold go? Up! Who's outsmarting who? The more government regulations, protectionism, etc. this administration conjures up, the more difficult it is for America to compete with world companies AND the lower the confidence becomes in American companies and America. We are in for a real storm. I haven't been past chapter 2 in Smick's book yet and he fills in the details to my expectations UNFORTUNATELY. You won't want to miss a word in this book. You will certainly want to start planning your future before the bottom drops out. btw, this book picks up from where Thomas Friedman's "The World is Flat" left off -- Friedman focused on Supply and Demand primarily and when trade drove capital flows; whereas, Smick shows where capital flows now drive trade. Congress doesn't get this and imagine how long it will take to get 60 senators to understand it. NO HOPE in the Hope Administration -- and, I believe, President O has a econ degree!