Brave new wealthy world : winning the struggle for world prosperity / John C. Edmunds.

Format:

Book

Author/Creator:

Edmunds, John C., 1947-

Language:

English

Subjects (All):

Wealth.

Investments.

Finance.

Economic development.

Physical Description:

xxii, 226 pages ; 24 cm

Place of Publication:

Upper Saddle River, N.J. : Financial Times Prentice Hall, [2003]

Summary:

Brave New Wealthy World demonstrates how today's international financial systems are spreading prosperity and well-being more widely than ever before -- and what it will take to spread the wealth to virtually every corner of the Earth. John C. Edmunds proposes a new symbiotic relationship between rich and poor countries that offers powerful benefits to both. He demonstrates why "first world" investors will increasingly depend upon growth in emerging economies to achieve the returns they need and offers a blueprint for transforming emerging nations' financial systems into powerful drivers of economic growth. This book cuts through the conventional wisdom and ideologies that hide the true implications of globalization -- and reveals a pragmatic path to a hopeful future.

Contents:

Chapter 1 A New Force and the Race to Harness It 1

Securitization 2

Does Securitization Create Value? 6

National Financial Systems 6

National Financial Systems as Engines of Growth 8

Asset Booms Contrasted with Bubbles 9

A Fully Securitized Country Contrasted with a Completely Unsecuritized Country 11

Implementing a Finance-Driven Growth Strategy 12

Competition to Harness the Power of Securitization 13

Origins of the Pressure to Harness the New Force 14

Favorable Conditions for the Securitization-Driven Growth Strategy 15

Chapter 2 An Idea Germinates 17

A Belief Grounded in Early Experiences 24

The Campaign to Raise Market Values Gets Underway 25

Chapter 3 Three Booms and How They Ended 27

Chapter 4 Financial Assets: Catalysts of World Prosperity 41

Shining the Spotlight on Financial Infrastructure 45

Growth Pattern of United States Financial Wealth 1960-1980 49

Growth of U.S. Financial Wealth Takes Off 1980-2000 53

Chapter 5 Three Defective National Financial Systems and Attributes of a Better One 61

The Era of Financial Assets Begins 79

Built to Fall Down 80

Two Tasks 81

Deliver Us from Temptation 85

Transmitting Pressure to Perform 86

Chapter 6 Is It Workable for Everyone to Invest in the United States? 89

Yields on U.S. Financial Investments Take Off 90

Priorities Shift to Raising Returns on Financial Assets 92

Americans Raise Their Aspirations 94

The New Mechanism for Creating Wealth in the United States 95

An Upper Limit to the Financial Wealth-Creation Process in the United States? 97

Breaking the Upper Limit to the Financial Wealth Creation Process 102

Emerging Countries as Sources of Raw Material for Securitization 105

Reforming National Financial Systems in the Emerging Countries 107

Chapter 7 Structuring Viable Ways to Invest in Poor Countries 111

Recycling Risk-Tolerant Capital 113

The Nicaraguan Flour Mill 115

The Blue Jeans Factory 118

Design Defects 119

The Philippine Generating Plants 120

No Design Defects? 121

A Better Design 122

Potential Gains from Better Design 125

The Cost of Defective Design 126

Pressure for Better Design 127

Chapter 8 Population and Wealth 131

The Controversy: Slowdown to Zero Population Growth? 137

Implications of the Population Slowdown 140

Causes of the Slowdown 142

Scenarios of Population and Wealth 144

Chapter 9 Rising Wealth and the Impending Labor Shortage 149

Wealth and Demand for Services 163

Spending from Wealth 165

Prospects for a U.S. Labor Shortage 166

The Distribution of Wealth and the Propensity to Spend New Wealth 167

Spending from Wealth and Job Creation 169

An Impending Labor Shortage, Or a Mirage? 170

Chapter 10 Wealth Concentration and Diffusion 173

Improvement in the Distribution of Income 174

A New Role for Poor People in the World Economy 175

The New Symbiotic Relationship between Rich Countries and Poor Countries 177

Details and Difficulties of the Symbiotic Relationship 179

Implementing the Proposed Solution 181

The Coming Shortage of Buyers in the Rich Countries 183

Savers in Poor Countries Rescue Rich Retirees? 184

International Diversification for Everyone 185

The Main Prosperity Diffusion Scenario 186

Feasibility of the Main Prosperity Diffusion Scenario 190

A More Grandiose Prosperity Diffusion Scenario 191

Implications for Investors 201

A Happy Ending 204.

Notes:

Includes bibliographical references (pages 207-213) and index.

ISBN:

0130381608

OCLC:

51984928