Cheap is the new cool

Capitalism, US version, had been dependent on the overspending of the consumers, who were advertised to buy more things which they want or not. Capitalism has been advocating to spend more than what people earn.  However, there have been some rethinking now as books on living cheaper has gained public support lately. 

Jeff Yeager is an author whose book on cheaper lifestyle including giving up cellphones are getting wide spread acceptance.  

The thrift culture has the potential to disrupt the global economies and globalization as we know it. There are opponents for this who say the thrift is just a fad.

Soros says worst of global crisis behind us

The following are comments of Soros about the current situation of globalization/global crisis :

This is not like previous crises but marks the end of an era. The system to date had been based on the false assumption that markets can independently regain their equilibrium and that the system is self-correcting.

We need international regulations to retain international markets. This won't be easy...If we won't be able to do this... than globalization, as we now know it, will fall apart,

To deal with the current crisis,  the state must step in, give guarantees to financial institutions and increase government spending.

Since that could create a risk of hyperinflation he said the state must diminish its role once the credit system is restored.

signs of reverse migration = reversal of globalization

Signs of reverse migration from urban to rural areas have started to appear. This is a significant reversal for Globalization.

The UN warns that poor people living in cities will probably face the most severe problems in coping with the global recession, because lower export demand and reduced foreign investment are likely to hit urban jobs harder.Many migrants to urban areas would be likely to return to rural areas, it added, transferring the burden.

Incomes have also dropped "substantially" in some developing countries where families depend on remittances from relatives working abroad.With the financial crisis hitting all parts of the world more or less simultaneously, developing countries have less room to adjust, the UN agency says.

Bric Summit and the dollar

The BRIC term was coined by Goldman Sachs economist Jim O'Neill in 2001 to describe the growing power of emerging market economies - Brazil, Russia, India and China.

The BRIC nations account for 15 percent of the $60.7 trillion global economy but Goldman Sachs predicts that in 20 years time, the four countries could together dwarf the G7 and China's economy will overtake the United States in total size.

These countries had met formally in the first BRIC summit as  an attempt to give the grouping a bigger voice in the world.  The Russian President Medvedev announced that "The BRIC summit must create the conditions for a fairer world order".  Comments by Russian President Dmitry Medvedev on Tuesday suggesting a need for a global reserve currency other than the greenback highlighted the challenges facing the dollar -- and sent it sliding across the board. Just a few months ago, China had suggested how the dollar could be replaced as the world's main reserve currency. Nouriel Roubin  said the main fear haunting investors is that the United States could allow inflation to return or the dollar to devalue as a way out of its debt problems.

However the summit had ended meekly without any major announcements on the strategy regarding dollar. The lack of mention of the dollar in the final statement appeared to underline again the differing positions among the BRIC nations about how to reform the world currency system. Russia has tended to be much more outspoken against U.S. dominance of the financial system than other BRIC nations, which favor a more cautious and diplomatic approach.

Dollar seems to be going to have a longer run as the world's reserve currency.