“Finally, be strong in the Lord, and in the strength of His might. Put on the full armor of God, that you may be able to stand firm against the schemes of the devil. For our struggle is not against flesh and blood, but against the rulers, against the powers, against the world forces of this darkness, against the spiritual forces of wickedness in the heavenly places. Therefore, take up the full armor of God, that you may be able to resist in the evil day, and having done everything, to stand firm.

Stand firm therefore, having girded your loins with truth, and having put on the breastplate of righteousness, and having shod your feet with the preparation of the gospel of peace; in addition to all, taking up the shield of faith with which you will be able to extinguish all the flaming missiles of the evil one. And take the helmet of salvation, and the sword of the Spirit, which is the word of God. With all prayer and petition pray at all times in the Spirit, and with this in view, be on the alert with all perseverance and petition for all the saints, and pray on my behalf, that utterance may be given to me in the opening of my mouth, to make known with boldness the mystery of the gospel, for which I am an ambassador in chains; that in proclaiming it I may speak boldly, as I ought to speak.”

Ephesians 6: 10-20

마틴 루터 킹의 연설을 포스팅한 포스트의 링크를 다시 올립니다. nnovationandeconomicanalysis.blogspot.kr/2013/01/martin-luther-king-drum-major-instinct.html 많은 분들께서 클릭해 주신 포스트입니다.  또한 John Henry Newman의”You Are Called To a Great Undertaking”과 존경하는 고 김인수 교수님의 “축복을 함께 나누어야”라는 글이 담긴 포스트의 링크도 덧붙입니다. nnovationandeconomicanalysis.blogspot.kr/2012/12/john-henry-newman-you-are-called-to_18.html

Who Are The Top Holders Of US Treasurys

Those who have read my blog know that China’s peculiar relationship with the U.S. has fuelled China’s rapid rise in the first place.  Korea and Japan have held the U.S. treasuries for a similar reason as well.

Many who understand the political economy of the global markets are closely watching change in the U.S. bond market.

From Zero Hedge:

Yesterday, when the Treasury released its TIC data early by mistake, the update that China's holdings rose to a record $1.317 trillion caused a stir. This was confusing, since while China, which as we reported yesterday, now has a record $3.8 trillion in reserves having grown by $500 billion in 2013, has barely invested in US paper, and in fact going back to 2010, its holdings were a solid $1.2 trillion. In other words, its Treasury holdings have increased by a modest $100 billion in three years. Hardly anything to write home about. And certainly nothing to write home about when one considers the soaring Treasury held by the largest holder of US paper... everyone knows who that is. For those few who don't, and for everyone else too, here is the most recent breakdown of the top holders of US paper.

http://www.zerohedge.com/news/2014-01-16/who-are-top-holders-us-treasurys

This Won't End Well

Samsung seems to know the state of the global economy.  That's why they are heavily investing in health care products.

Central governments around the globe in conjunction with central banks are kicking the can down the road.  It is disteartening to think that future generations have to pay for this.  Greed and corruption are the underlying factors.  In a sense, we are worse than in 2008.

From Zero Hedge:

Presented with little comment aside to ask (rhetorically of course) how much longer the crushed consumer can subsist on a diet of increasingly saturated credit and dwindled-savings before retail sales revert to reality...





h/t @Not_Jim_Cramer

http://www.zerohedge.com/news/2014-01-14/wont-end-well

갈수록 커지는 ‘빅2’…한국경제 혁신 동력은 약해진다

The article below echoes what I have pointed out on this blog: For instance, a problem of chaebol-centered economic structure and a need for making the transition in Korea's economic model from export-dependent to more domestic consumption-based one.  While some chaebols' balance sheets have got stronger, the middle class income has declined.

한겨레로부터:

삼성전자·현대자동차 등 특정 기업이 한국 경제에서 차지하는 비중은 압도적이다. 삼성전자, 현대자동차, 현대모비스, 포스코, 에스케이(SK)하이닉스 등 시가총액 상위 5개 기업이 전체 시가총액에서 차지하는 비중은 25.83%(지난해 말 기준)에 이른다. 특히 삼성전자의 시가총액은 202조원으로 전체 시가총액의 15.47%에 이르렀다. 2위인 현대자동차(52.1조원)와 비교해도 4배에 가까운 격차를 보였다. 특히 시가총액 1, 2위인 삼성전자와 현대자동차의 시가총액을 합치면 전체의 19.46%에 달했다. 그룹 계열사의 시가총액을 합치면 전체의 35%를 넘어선다.

이런 쏠림 현상은 국내 경제 전반에 만만치 않은 부작용을 불러온다. 삼성전자·현대자동차에 대한 의존도가 높아진데다, 삼성전자와 현대자동차의 기업 ‘포트폴리오’ 역시 일부 종목에 집중돼 있는 상황이다. 모바일 시장과 완성차 시장에 변수가 생길 경우 한국 경제가 몸살을 앓을 가능성이 높다. 핀란드는 이미 이런 부작용을 경험한 바 있다. 노키아의 하락세가 표면화된 2007년 핀란드의 경제성장률은 0.3%를 기록하며 2006년에 비해 5%포인트 이상 떨어졌고, 실업률 역시 6.7%에서 8.2%로 크게 늘어났다. 노키아는 1998~2006년 핀란드 전체 법인세액의 20% 이상을 차지했다. 경제개혁연대 김상조 소장(한성대 교수)은 “한국 경제는 지난 30여년 동안 국내 챔피언을 육성해 세계시장에서 경쟁하게 하는 방식으로 대기업 집중 성장모델을 추구했는데, 이제는 그 대기업에 대한 의존도가 한국 경제 전반에 위협을 가할 수 있는 상황이 돼 버렸다”고 말했다.

지나친 대기업 쏠림 현상은 건전한 경제 생태계 조성에도 부정적인 영향을 끼칠 수밖에 없다. 한 대기업 임원은 “주요 대기업과 그 협력업체를 제외하고는 경쟁력을 갖출 수 없는 구조가 된 것으로 보인다”며 “다양한 분야에 자원 배분이 되지 않는 이상, 새로운 혁신 기업이 등장하기는 어렵다”고 말했다. 최근 들어 대기업의 실적 호조가 중견·중소기업으로 자연스럽게 흐른다는 ‘낙수효과’의 허구성이 입증되며, 국민 경제에 미치는 부작용도 만만찮아 보인다. 한국개발연구원(KDI)에 따르면, 우리나라 전체 소득에서 가계소득이 차지하는 비중은 2000년 69%에서 2012년 62%까지 하락한 반면, 기업소득은 같은 기간 17%에서 23%로 늘었다. 가계 소득 부진에 따른 민간소비 부진은 경기회복의 가장 큰 걸림돌로 떠올라 있는 실정이다.

정부도 이런 인식을 공유하고 있는 것으로 보인다. 현오석 부총리 겸 기획재정부 장관은 이날 서울 광화문 케이티(KT) 사옥에서 열린 민관합동 창조경제추진단 출범식에서 “경제부처가 양극화를 분석하듯이 경제활동에서도 기업의 집중도를 분석할 필요가 있다”고 말했다. 현 부총리는 “경제정책의 변화로 받아들이지 말아 달라”고 선을 그었지만, 대기업 의존도에 대한 정부 나름의 해법을 모색하고 있는 것으로 추정된다. 앞서 기재부는 삼성과 현대자동차 그룹을 제외한 국내총생산(GDP)을 추산하기 위한 연구용역을 발주한 바도 있다.

인하대 김진방 교수(경제학)도 “우선은 산업구조를 내수 위주로 바꾸거나 수출 기업을 대상으로 한 환율 보조금을 폐지하는 등 수출주도형 경제전략을 재검토해야 한다”며 “‘...

http://www.hani.co.kr/arti/economy/economy_general/619572.html?_fr=mt5

The Reason Nokia Kept the Patents

I read this article a few months ago, and yet didn't get to post it.

From Testosterone Pit:

patents are like gold. And if there is one thing Nokia knows, it’s how to mine “patent” gold. First the company rented (licensed) its patents to Microsoft for just north of $2 billion for 10 years. This is in addition to the $5 billion Microsoft paid for Nokia’s handset business. By retaining ownership of its patents, Nokia is free to license them to others (the contract with Microsoft is non-exclusive), thereby doubling down on possible income from the same patents. In addition, Nokia’s “rent-but-don’t-sell” strategy with Microsoft also makes it possible for the company to go after some of the very same Android manufacturers with which Microsoft already has patent royalty deals according to ars technica. As a bonus, now that Nokia will no longer make smartphones, the company will be free to sue without fear of lawsuit retribution from competitors. 

Related: Microsoft Buying Nokia for $7.2 Billion, Here's Why

Furthermore, Nokia has made its strategy clear.  In an email to Reuters, Nokia spokesman Mark Durrant said, "Once we no longer have our own mobile devices business, following the close of the (Microsoft) transaction, we would be able to explore licensing some of those technologies." No stranger to lawsuits over intellectual property, Nokia sued Apple (NASDAQ: AAPL) in 2009 and reached a licensing deal believed to be worth hundreds of millions of dollars, according to Reuters. Finally, The Washington Post noted that Nokia already receives $658 million a year in patent royalties. The newspaper said that with an estimated 30,000 utility patents and 8,500 design patents, plus the fact the company has not been afraid to sue some big players in the past, leads to the obvious conclusion that patent income may soon become a huge moneymaker for the company.

http://www.testosteronepit.com/home/2013/9/4/the-reason-nokia-kept-the-patents.html

"Fear not. For behold, I bring you good tidings of great joy to all people. For to you is born this day in the city of David a Saviour, which is Christ the Lord. And this shall be a sign to you; You will find a babe wrapped in swaddling clothes, lying humbly in a manger. And suddenly with the angel there was a multitude of the heavenly host praising God, and saying, Glory to God in the highest, and on earth, peace toward men of good will."
 Luke 2:10-14


Thanks to your prayer for me, I'm miraculously  recovering and posting again.  I sincerely appreciate your support.  Please continue to remember me in your prayers as I still see my doctors at a hospital and need the strength to go on.

The Trends To Watch For In 2014 and Beyond

Here are some trends to watch for in the Korean context, which echo some of the themes on this blog.

•Median household income, the foundation of real economic growth, would continue to stagnate.  That would widen income and wealth disparity, deteriorating social cohesion.  An income disparity would continue to act as a drag on the real economy.  As pointed out, median household income is more important than Korea’s GDP figures while a slowdown in GDP is inevitable as well.

•Structural disconnect in the job market would continue (For instance, unemployment remains high, especially among college graduates)

•A majority of the Korean small businesses, the engine of hiring and economic growth, would continue to suffer due to structural reasons such as skewed industrial structure and lack of inclusive institutions that nurture innovation.

•Governmental debt and household debt would continuously rise.

•Korea is in store for real estate busts.  So are other countries including China.

•A currency crisis is looming as competitive debasement continues.  Although it is not limited to Korea, a global currency crisis seems to be inevitable.

Those trends are not limited to Korea.  A global economic crisis would be inevitable.  Will it happen in 2014?  We don’t know.  Nor does anyone else.

Korea has to be rebuilt on stronger principles.  While the short term technical may look O.K., the underlying economic fundamentals are bad.