Monday, January 5, 2018, the stock market dropped sharply that is shaking the global market, the world wiped out $USD 4 trillion. Every breath of Wall Street, the New York Stock Exchange (NYSE) affects the world. Australia has suffered the biggest loss in more than two years and wiped out $AUD 66 billion from the valuation. Indeed, Australia could lose more, the prediction estimates about $AUD 84 billion. While Europe received the potential loss as Germany lost 3.06%, France lost 4.88%, the UK lost 2.59%…
The global stock market has been nervous, actually, the investors and the banking industry have tried to console themselves, although they are worried about the unstable economy in future. The fall from Monday continues on Tuesday, January 6, 2018, the global market trembles while the big loss occurs without a signal after Wall Street hit the heavy selling in the second time.
The Asian markets could not escape the economic concussion, the economic Tsunami is Spreading and hit Nikkei (Japan) lost 5%, Hong Kong’s Hang Seng dropped more than 4%., China lost 3.38%. Despite the reason for stock market crashed is not clear yet, but hence White House changed the leadership and new administration is led by President Donald Trump, the successful businessman, he experiences on the economic and financial management, so it is just a year getting the office, the US economy thrives. Before, under the era of the mouthful President Barrack Obama with the slogan” Yes We Can”, the index of Dow Jones struggled on 17,000 or lessened. Therefore, now the Dow Jones approached more than 26,000, it increased about 26%. The US’s economic growth conflicts against the weak economic management’s country, actually, the countries have not suited the US growth, they should face the problem, even engage the recession or economic crisis. The economy downs that could conduct the political crisis and possibly some government should be toppled.
The US is the global economic hub, the US currency globalizes, any currency has to based on the US dollar’s valuation. The change of US dollar’s rate or the economic management changes could affect the global economy. In communication’s technology, the Analog replaced by Digital, so the old television trashed. The internet ruined newspaper and radically vary the publishing industry, so the economic management changes in the US, the global economy following.
The sensible national leaders couldn’t ignore the leader’s change in White House, actually, the nations deeply involved with China has carried out the global economic terror’s strategy. If the nations have not wake up yet or couldn’t react the new change in the US, they couldn’t escape the recession or crisis. The shaking in Wall Street on Monday, January 5, 2018, continues to raise the grave concern and worry of those countries have not copped the US growth. The stock market evolves that conducts the loss of index occurs from Asian to Europe is the temporary shock, the free market’s economic management in the democratic country will recover and rebound the index and the currency will be greenback, it is the self-defensive reaction’s body of the economy. Therefore the dictatorial countries, mostly the communist states, the self-defensive reaction’s system being weak by its socialism, the recovery could take longer, even collapse. The stock market crashed that measures the economic reaction of the world and also testing the capacity of the US economy has changed the new tactic, actually, the democratic countries. The sharp loss of Wall Street warns the leaders, and economists could learn the lesson or study the market then they could fix the problem as soon as possible. It is the normality in a free market, after the storm, the damages recovered. Despite the cause of the stock market crash has not known yet, but it comes from the changes in the US:
-The rapid development of Donald Trump’s economic management: the economic speed increases by the unemployment rate downs, the biggest tax cut the company and worker since 1986 those help the US thrives and wakes up after 8 years sleeping under Obama’s era.
-The US interest rate and bond hike that shows the economic growth (*)
-The Federal Reserve Bank’s chairperson is Janet Yellen replaced by Jerome Powell: Miss chairwoman Janet Yellen was pointed by President Barrack Obama, she criticized the economic concern of President Donald Trump, she is the Obama’s vestige. Despite Janet Yellen is the famous economist or economic scholar but she couldn’t make billions as Donald Trump so the economic theory could favor the university, therefore the successful business’s experience of Donald Trump could help the country’s development.
-The US companies repatriated if they want to afford the tax cut’s policy: The Apple bring back money and invest in the US:” Apple Inc. said it will bring hundreds of billions of overseas dollars back to the U.S., pay about $38 billion in taxes on the money and invest tens of billions on domestic jobs, manufacturing and data centers in the coming years.The iPhone maker plans capital expenditures of $30 billion in the U.S. over five years and will create 20,000 new jobs at existing sites and a new campus it intends to open, the Cupertino, California-based company said Wednesday in a statement. Apple’s shares gained less than 1 percent to $177.27..” (Fortune by Bloomberg on January 17, 2018)
-The psychology of the US people enhance, they strongly believe in the national economy boosts as President Donald Trump vows to make America great again.
-China’s economy has been lost the global credit, mostly the consumer boycott the product made in China and even the foreign company made in China would be affected. The Hang Seng lost that means China faces the problem, so Hong Kong’s status could tell China’s loss. Nevertheless, China tries to keep the economic growth around 6.5% in 2018, therefore, the predict being doubted while the economic fluctuation could occur anytime, moreover the global economic center located in Washington at Wall Street.
The democratic country panic to react and learn the stock market crash. The concern leaders could recognize the reality and the economic power in Washington, not Beijing. Nevertheless, dealing with China is worst off than better off because China’s economic management is quite different from the democratic country despite China applies the free market that is deception, Beijing couldn’t hide the monkey tail” free market is led by socialism”. The Western has to learn the bloody lesson of Australian billionaire James Packer who lost $AUD 4.2 billion in Macau Casino Resort by the bush law of Xi Jinping. Doing business with China is like handling money to the dishonest and robber. The US is the global economic center, China is the hub of global deception.
China’s economic management is obsolete and sclerosis while the free market is keen to vary plus the flexible. Moreover, China exploits the economy is a strong force and using as the global economic terror. The hegemonic strategy conducts the economic activity, the China economic network subverts the counterparts and transforming the nations to economic vassals. Nowadays, the time runs out and the conspiracy unmasked, the stock market crashed that wakes up the world, any country wants to avoid the problem, the new economic practice in the US is glowing the light, do not follow the dark side of China, the failure is not far while the USA is the best place for cooperation, development, and trust.
After two days, the stock market crashed, on January 7, 2018, Wall Street bounce 2.3% and some stock markets returned a part of the loss. However, the world market and the investor are still nervous. The New York Stock Exchange could perform the monetary drill after the first year changed the economic management, it is the test of the economic reaction of the US and allies and in the future, when the economic battle occurs, the US and allies have the experience for a challenge with the enemy./.
(*) In Australia, from 2007 to 2013, the national economy held by Treasurer Wayne Swan and Finance Minister Penny Wong. Unfortunately, both important ministers didn’t understand the basic economic lesson, so every time the Australia Reserve Bank cut the interest rate, they were happy and praised the economic growth, indeed Australia’s economy being downed and getting trouble. Labor government spent $AUD 42 billion surpluses of Coalition government left over and Labor cause the deep debt. A mechanic couldn’t do the medical doctor’s job, the illiterate treasurer and finance ministers destroyed Australia’s economy and the consequence taking a long time to fix. The incumbent shadow cabinet of Labor is the members of former ministers of Kevin Rudd and Julia Gillard, actually, Senator Penny Wong is the shadow foreign minister, if they win the next election, the Australian people will face the worst off as before.