Tuesday, May 24, 2016

Overcoming Challenges of 3D’s vs. 3I’s

The global economy is undergoing major dynamic transformation. Depending on various insights, opinions and viewpoints between fundamental(s) versus technical(s), the key drivers continue to inherently be dependent upon the “3D’s vs. 3I’s” (Deflation-Demand-Debt vs. Inflation-Income Tax-Interest Rates).

Regardless of public sector versus private sector or; developed versus emerging economies or; brick & mortar versus digital or; otherwise, the fundamentals of the global commercial market scenario continues to prevail over central planning. This includes, but not limited to; supply-demand; unmet demand gap; elasticity of income levels and commodity prices; purchasing power of wholesale / retail customers; regulatory policy & framework; infrastructure; competition; alternative supply chain sources and; influencing factors (politics, bureaucracy, legislative etc.).


The “3D’s vs. 3I’s” as well as the supporting elements, as shown in adjacent figure, are essential in maintaining sustainable, stable, and sound economic health. This in turns directly affects wealth and various associated asset classes. Various stakeholders impacted, based on market segmentation and demographics, include Government, Corporate, Academia, Non-Profits, and Individuals.

Whether global currencies either cooperate and/or compete in various trade and policy scenarios in order to gain increased global market share, it is important for all of the various stakeholders to clearly understand and appreciate the critical underlying factors which influence “3D’s vs. 3I’s”. In addition, it is paramount to ascertain the various associated risks, viable mitigation strategies and plans as well as ensuring downside risk is well understood and most certainly taken into account.

On the positive side, there is a plausible and viable methodology and approach for addressing potential challenges and resulting adverse impact of “3D’s vs. 3I’s”. As shown in adjacent figure, subject to collective and inclusive emphasis of various stakeholders, unleashing the dynamic potential power of “STEAMIE” can critically unlock the vast amount of human capital and retransform the macroeconomic and microeconomic landscape. If done effectively, various positive benefits can be definitively achieved in terms of holistic solutions, social responsibility, sustainability and preserving society-at-large. In addition, “STEAMIE” can help in rebuilding individual wealth across various socioeconomic demographics including, but not limited to, lower income groups, middle class, and mass affluent market segments. This will help in a big way in restoring purchasing power (disposable income levels) of both wholesale and retail consumers.

No comments:

Post a Comment