Comments on: Hold your nose and talk to the Fat Man? http://www.rjkoehler.com/2005/04/28/hold-your-nose-and-talk-to-the-fat-man/ Korea... in Blog Format Sat, 6 Sep 2008 23:28:44 +0000 http://wordpress.org/?v=2.6.1 By: rtc Gms Strp Pkr http://www.rjkoehler.com/2005/04/28/hold-your-nose-and-talk-to-the-fat-man/#comment-15506 rtc Gms Strp Pkr Sat, 15 Oct 2005 07:06:02 +0000 http://rjkoehler.com/?p=1581#comment-15506 rtc Gms Strp Pkr You may find it interesting to take a look at some relevant pages in the field of pkr prty prdctns rtc Gms Strp Pkr

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]]> By: vgr http://www.rjkoehler.com/2005/04/28/hold-your-nose-and-talk-to-the-fat-man/#comment-15503 vgr Wed, 21 Sep 2005 09:38:02 +0000 http://rjkoehler.com/?p=1581#comment-15503 vgr In your free time, visit the pages on vgr vgr

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]]> By: virtual wonderer http://www.rjkoehler.com/2005/04/28/hold-your-nose-and-talk-to-the-fat-man/#comment-15502 virtual wonderer Tue, 03 May 2005 11:46:26 +0000 http://rjkoehler.com/?p=1581#comment-15502 ahh... how quickly the lessons of the asian monetary crisis is lost upon us... Back, I believe in 1997?, the Thai central bank decided to devalue it's currency. (I do not know the reason behind this move, as I am a complete neophyte in international finance.) As a reaction to this other ASEAN countries followed suit, causing a mass chain-reaction. (typically export oriented economies devalue their currency to make their export product more competitive.) One big result of this was that money these nations owed to other nations, in their own currency, would be lessened. If company XYZ owed SONY 100baht, and the value of the thai baht just fell, then effectively, company XYZ owed less money, and SONY lost money. South Korea had a lot of countracts on short-term loans, and when all the ASEAN countries imploded, foreign investors panicked and pulled out of South Korea, as they feared that South Korea who had done a lot of business with these nations would be hit. Without investor confidence, financial community refused to lend short term loans to Korea, and Korea was on the brink of announcing a moratorium. But we know (or we should know) that countries really cannot go bankrupt. As the saying goes, if you owe me $10 dollars, that's your problem, but if you owe me $10,000, that's my problem--and hence the IMF rescued (sorta) Korea. Also, a lot of Korean people think that they live in a "small" country. But if Korea were to switch location with say, Peru, then Korea would be known as a South American regional power along with Argentina and Brazil. If Korea switched locations with Ivory Coast, Korea would be considered a regional power in Africa. If Korea switched locations with Uzbekistan... well so on and so forth. My point is that Korea is not as "small" as Koreans think it is. But Koreans tend to compare themselves only with the big fishes in the sea, and for whatever reason, expats follow suit. What I'm trying to say is that in this globalized economy, it's really hard to tell what would happen to our own livelihood, but it's not so easy to say, "If Korean economy went under, we woudn't feel a thing." Discounting even the massive amount of wealth and productive power lost (and of course, it's corollary, market demand), market fluctuation alone is a cause for concern. Going back to my Asian currency crisis recap, the initial domino does not have to be a large piece. If the "small" Korean domino is standing next to bigger and bigger pieces like Japan and China, it can knock out even a gigantic piece like the US. ahh… how quickly the lessons of the asian monetary crisis is lost upon us… Back, I believe in 1997?, the Thai central bank decided to devalue it’s currency. (I do not know the reason behind this move, as I am a complete neophyte in international finance.) As a reaction to this other ASEAN countries followed suit, causing a mass chain-reaction. (typically export oriented economies devalue their currency to make their export product more competitive.) One big result of this was that money these nations owed to other nations, in their own currency, would be lessened. If company XYZ owed SONY 100baht, and the value of the thai baht just fell, then effectively, company XYZ owed less money, and SONY lost money. South Korea had a lot of countracts on short-term loans, and when all the ASEAN countries imploded, foreign investors panicked and pulled out of South Korea, as they feared that South Korea who had done a lot of business with these nations would be hit. Without investor confidence, financial community refused to lend short term loans to Korea, and Korea was on the brink of announcing a moratorium. But we know (or we should know) that countries really cannot go bankrupt. As the saying goes, if you owe me $10 dollars, that’s your problem, but if you owe me $10,000, that’s my problem–and hence the IMF rescued (sorta) Korea.

Also, a lot of Korean people think that they live in a “small” country. But if Korea were to switch location with say, Peru, then Korea would be known as a South American regional power along with Argentina and Brazil. If Korea switched locations with Ivory Coast, Korea would be considered a regional power in Africa. If Korea switched locations with Uzbekistan… well so on and so forth. My point is that Korea is not as “small” as Koreans think it is. But Koreans tend to compare themselves only with the big fishes in the sea, and for whatever reason, expats follow suit.

What I’m trying to say is that in this globalized economy, it’s really hard to tell what would happen to our own livelihood, but it’s not so easy to say, “If Korean economy went under, we woudn’t feel a thing.” Discounting even the massive amount of wealth and productive power lost (and of course, it’s corollary, market demand), market fluctuation alone is a cause for concern.

Going back to my Asian currency crisis recap, the initial domino does not have to be a large piece. If the “small” Korean domino is standing next to bigger and bigger pieces like Japan and China, it can knock out even a gigantic piece like the US.

]]> By: Mac http://www.rjkoehler.com/2005/04/28/hold-your-nose-and-talk-to-the-fat-man/#comment-15501 Mac Mon, 02 May 2005 03:25:48 +0000 http://rjkoehler.com/?p=1581#comment-15501 I must rebut usinkorea's statement "South Korea accomplished a great thing, but it was not Superman all alone?€??€?" After watching the Korean media for three years I've learned the truth. All good accomplishments were wholly the result of Korean hard work and intelligence. All negative things are caused by foreigners. I must rebut usinkorea’s statement “South Korea accomplished a great thing, but it was not Superman all alone?€??€?”

After watching the Korean media for three years I’ve learned the truth. All good accomplishments were wholly the result of Korean hard work and intelligence. All negative things are caused by foreigners.

]]> By: usinkorea http://www.rjkoehler.com/2005/04/28/hold-your-nose-and-talk-to-the-fat-man/#comment-15500 usinkorea Sun, 01 May 2005 01:00:56 +0000 http://rjkoehler.com/?p=1581#comment-15500 I thought Japan had a decent miracle after 1945... I don't mean to play a card in the SK vs Japan war. It just so happens that Japan was devastated by a war, was even occupied by an enemy, and it grew to being the #1 economy in the world at one point. Anytime I find myself moving toward absolutes, my mind reminds me to check myself. South Korea accomplished a great thing, but it was not Superman all alone....... I thought Japan had a decent miracle after 1945…

I don’t mean to play a card in the SK vs Japan war. It just so happens that Japan was devastated by a war, was even occupied by an enemy, and it grew to being the #1 economy in the world at one point.

Anytime I find myself moving toward absolutes, my mind reminds me to check myself.

South Korea accomplished a great thing, but it was not Superman all alone…….

]]> By: dogbert http://www.rjkoehler.com/2005/04/28/hold-your-nose-and-talk-to-the-fat-man/#comment-15499 dogbert Sat, 30 Apr 2005 09:17:09 +0000 http://rjkoehler.com/?p=1581#comment-15499 Not to slight Korea, but rankings do not tell the whole story do they? What does it mean to be the 10th largest? What drives Korea's economy, in other words. Or let's look at it this way. Where now is the country that was ranked 10th when Korea was ranked, say, 30th? Not to slight Korea, but rankings do not tell the whole story do they? What does it mean to be the 10th largest? What drives Korea’s economy, in other words.

Or let’s look at it this way. Where now is the country that was ranked 10th when Korea was ranked, say, 30th?

]]> By: nora sumi park http://www.rjkoehler.com/2005/04/28/hold-your-nose-and-talk-to-the-fat-man/#comment-15498 nora sumi park Sat, 30 Apr 2005 09:08:05 +0000 http://rjkoehler.com/?p=1581#comment-15498 what other such investments are there besides treasury bills? what other such investments are there besides treasury bills?

]]> By: mae http://www.rjkoehler.com/2005/04/28/hold-your-nose-and-talk-to-the-fat-man/#comment-15497 mae Sat, 30 Apr 2005 08:39:41 +0000 http://rjkoehler.com/?p=1581#comment-15497 as of '05 feb, followings are top 5 owners of the us treasury bills; japan $709bil china $197bil u.k. $176bil carribean tax heavens $104bil rok $67bil well, it is big enough to create some panic if rok diverts it to other investments. but guess not that big that a good friend of bush, koizumi, cant absorb. obviously, we cant underestimate magnitude of rok economy but the us is better watch china as far as the treasury bill is concerned. as of ‘05 feb, followings are top 5 owners of the us treasury bills;
japan $709bil
china $197bil
u.k. $176bil
carribean tax heavens $104bil
rok $67bil
well, it is big enough to create some panic if rok diverts it to other investments. but guess not that big that a good friend of bush, koizumi, cant absorb. obviously, we cant underestimate magnitude of rok economy but the us is better watch china as far as the treasury bill is concerned.

]]> By: nora sumi park http://www.rjkoehler.com/2005/04/28/hold-your-nose-and-talk-to-the-fat-man/#comment-15496 nora sumi park Sat, 30 Apr 2005 08:06:46 +0000 http://rjkoehler.com/?p=1581#comment-15496 mingi wrote: If the world?€™s tenth largest economy crashed, I?€™m sure it would have a notable impact regionally and globally. some of the people out there just like to think that korea ain't all that significant. #10 economy? p'shaw! why, hackers must have broken into the economists' database! (of course, the converse is that korea ain't always as important as some koreans would like to think it is). mingi wrote:
If the world?€™s tenth largest economy crashed, I?€™m sure it would have a notable impact regionally and globally.
some of the people out there just like to think that korea ain’t all that significant.

#10 economy? p’shaw! why, hackers must have broken into the economists’ database!

(of course, the converse is that korea ain’t always as important as some koreans would like to think it is).

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