Wednesday, November 27, 2013

Key Economic Drivers for 2014+

As 2014 nears, the key drivers for the global economy continue to be, including but not limited to, 1) Interest Rates, 2) Taxes, 3) Inflation / Deflation, 4) Rising Prices and, 5) Confidence in Currencies.

Regardless of the ongoing debate over public sector vs. private sector and other related macro political-socio-economic factors, the above key drivers will determine the balance sheet, profit & loss and cashflow statements of various stakeholders such as; government(s), corporate(s), academia, and individual(s).

The key drivers for the various stakeholders are inherently dependent upon basic market fundamentals of; 1) supply-demand, 2) unmet gap, 3) elasticity of price / income / demand, 4) infrastructure, 5) regulatory policy & framework, 6) alternative / competing scenarios and 7) influencing factors.

The critical influencing factors, or "3 D's", which are directly interrelated to the key drivers, various stakeholders and basic market fundamentals are; 1) Debt, 2) Deficits and 3) Demand.

Regardless of the outcome in the near-term, short-term and long-term, various stakeholders which have the capacity, ability, and willingness to effectively "Deleverage" their balance sheets will be able to maintain a sustainable path moving forward. Alternative scenarios for Deleveraging may include, but not limited to, effective means of liquidating accumulated Debt while overcoming Deficits through regeneration of the ever vital and tangible products and services life cycle and value chain.

The resulting net effect of the entire process will be a revitalization and resurgence in Demand thereby restoring time-tested basic market fundamentals.

Only time can actually tell the outcome based on the energy, efforts and commitment of various stakeholders involved.

References:
1. http://usawatchdog.com/bubble-inflating-all-around-us-david-stockman/
2. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/11/26_Heres_The_Truth_Governments_Dont_Want_The_Public_To_See.html
3. http://www.jsmineset.com/jims-formula/

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