The crisis has caused severe economic collapses around the world. But thanks to the flood of central bank money and the investment emergency, there is hope. While Europe is still in the Lock Dow and the economic forecasts are getting worse all the time, the so-called developing countries can grow properly.
After all, the industrialised countries and their central banks are insanely indebted, and even more so than the developing countries.
Most emerging countries are still far less indebted, their total debt rose by about 9.3 percentage points to 62.4 per cent of economic output last year. In the industrialised countries, on the other hand, it climbed by almost 20 percentage points to 124.1 per cent.
One problem is the danger of a sharp rise in inflation. Developing countries are even more at risk, however, because rising food prices meet a mostly weak national currency here.
Most developing countries also borrow in US dollars, which have fallen sharply recently and are thus tempted to take out loans.
These countries get money into the country through absurdly long bonds and the financiers fight over these bonds. For example, you get a whopping 3.5% for a 50-year bond from Indonesia. Anyone who can now say what can happen in 50 years really has the magic crystal ball.
The real statement is that never before has so much money been in circulation and it wants to be invested.
Mexico's tourism authority is building a 1500-kilometre railway link. Indonesia wants to build 25 new airports in the next three years. And Saudi Arabia is planning a city 170 kilometres long in the middle of the desert, called "The Line".
How sensible some of the projects here are is highly questionable. Who wants to live in the desert, for example, and at an outside temperature of 50 degrees?
Whether Saudi Arabia will still be earning money from oil in 50 years is also questionable.
There is one advantage to all this money, however, because these countries are currently experiencing a real boom in their economies. If this growth is also supported by the private sector, then a rapid alignment with the industrialised countries could take place.
Source
