The Economic Clock Has Malfunctioned

Clocks are suppose to enable us to tell the time. Before the clock a sundial was used. The sundial had one problem in that when the day was cloudy, it was hard to tell the time. The sundial basically relied upon casting a shadow across a circle that had markings which designate the time of the day.

The economic clock is supposed to be a reliable means of telling what investment is the best investment to be in at the current time in the economic cycle. However, what might have seemed to be a reliable means of telling the what the market was doing for the last 200yrs appears to have come unstuck. This is because the clocks predictions were based on a model that virtually only included Europe and and North America, with the additions of Japan, Taiwan, South Africa and Australasia.

Most of the world’s population was largely excluded from wealth and economic growth that affected these first wold economies. The second world economies included the Russian Communist Countries, China and India and Arab countries. The third world was seen as Central and South America, Africa and parts of South Asia.

What the economic clock advocates have failed to take into account is that the second world countries have come on board the global economy and are fast becoming first world countries. What this means is there are 2.5 billion people in India and China who are beginning to participate in the global economy that previously were excluded and also another 1 billion from the Arab and previous European and Russian communist countries.