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REVIEW of Money 31
The Financial Butterfly
what happens anywhere in the world matters to you - wherever you are
The principle is classic - a butterfly flaps its wings disturbing the air next to it; which, in turn, creates a ripple-effect spreading ever outward. Finance is like that. What happens in one country will eventually impact on another, albeit a world away. Politics, particularly Federal elections, are always of concern to the money-moguls because the result will determine the advisability of continuing to invest in that country, or pulling the money out to put it somewhere else for the time being. Needless to say, this affects the financial stability of the economy in that country; and the recipient of that temporary cash injection.
What does this matter to the average person? Well, everyone knows about inflation, and prices go up for reasons that are not necessarily localised. Goods are imported and exported, many subject to tariffs and taxes imposed by governments on both sides of the deal; and these dictate the prices to the consumers - us. A particular mineral in short supply will increase the cost of whatever it is used to produce. To put it in simpler terms, problems experienced by coffee-growers in Brazil will see a rise in the price of coffee around the world. The breeze from that particular butterfly's wings has been felt far and wide.
Ordinary people cannot avoid the impact of money-juggling by the big boys; but staying informed about what they are doing and when means we are at least prepared. There are ways to send a strong message, though: like boycotting over-priced items; and also not getting caught out by stocking up on those soon likely to be in short supply. So, watch the evening news, read the newspapers, and know what's coming your way; or not, as the case may be.
To read the complete article or download the PDF of Money 31 click here
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