Will Financial Markets Always Exist?

I've been thinking about this for awhile.

Even though we are working hard to become traders, what do you suppose is the longevity of a career (Trading)?

What if the USA starts to default on its massive domestic debt, etc?

Other markets would contract obviously and another global recession would follow. At this point there is a danger that politicians of the world might start to insulate and abandon the capitalism model. That concerns me.

I know it doesn't affect us now and it's probably nothing to worry about but do you think the very idea of speculating in Financial Markets could one day become threatened?

So long as money exists there will always exist a need for financial markets.

The only thing you have to worry about is your access to them. That is in the hands of the "Gods".

And the "market" has been around since biblical times. The "market" will always be here.

while there are different currencies and the need for change ... there will be market.

Try telling that to people from the former communist block. There was no market at work there and I just read an article about how the UN is considering global taxes: http://www.forexfactory.com/news.php?do=news&id=386792

Global taxes would strengthen the UN and eventually make it into a world government superceding all others . After that and with the threat of competition gone, they'll be free to sovietize the world with no outstanding force remaining capable of mounting any resistance.

Can't wait for the demise of the financial institutions worlwide and a return to the old soviet style regime.
Love this law:
Speculation = 5 years jail in Siberia.

An inherent tendency in capitalism (and I don't mean mercantilism or other forms of exchange, but specifically capitalism with its Anglo-Saxon legal basis in intangible wealth formation) is the relentless drive to globalised deregulation.

I would characterise this as an unseen hand that compels even the most avid regulationist to respect deregulation and globalisation. Part of this process involves the populisation of all the strands of capital in a bid to deepen liquidity and that of course will see the expansion of trading, IMHO.

Nothing short of a terminal collapse of capitalism will halt this process.

Most unlikely. The basis of the Soviets was collectivised commonality, not personal value extraction. Unless the well off elite, both commercial and managerial, suddenly developed a desire to off load all their wealth in a flash in pursuit of commonisation, this is about as likely as discovering the holy grail to trading.

It should be borne in mind that capital's core tendencies will either render efforts at regulation, pointless or sterile (witness "communist" China.)

My suggestion to you would be to perfect your skills at trading. Popular trading is on the brink of sweeping the masses.

Great posts, awakens the noggin!

I thought China was too busy leveraging the weakness of the US Dollar to capture the economies of smaller Asian countries, to allow a high-end trading approach such as the super-rich in Britain do to balance power/currencies in the more-developed countries.


"An inherent tendency in capitalism (and I don't mean mercantilism or other forms of exchange, but specifically capitalism with its Anglo-Saxon legal basis in intangible wealth formation) is the relentless drive to globalised deregulation.

I would characterise this as an unseen hand that compels even the most avid regulationist to respect deregulation and globalisation. Part of this process involves the popularisation of all the strands of capital in a bid to deepen liquidity and that of course will see the expansion of trading, IMHO.

Nothing short of a terminal collapse of capitalism will halt this process."

-- The poorer people infiltrate through the crevices an open market brings, as I see it following through your posts. The bigwigs have their own system, as in notes for the other post above, per major economy, each of which may or may not resemble what the median currency traders do.

Also:
You said mercantilism is separate, only trading is a product of mercantilism, so its form will resemble mercantilism in some ways.

Merchantilism's waves of the 'new and improved' can run over valuable methods of older, less efficient versions.
A tribe's way of psychology or hunting, or late 19th century's widespread use of knots, for instance, are lost or hidden, in the bid for a "better" way,
and happen before such methods can be properly documented and thus 'globalized';
as well, often lesser economies use stop-gap measures to get exchange with greater ones, through destroying the environment and lots of its materials such as extinct species' genetics.

The poorer people accept mercantilism as a more efficient way of living, only capitalism has its own woes through higher risk factors in getting capital to sustain that living, often resulting in a large swath of people being un- or underemployed in even the more-developed countries, and increasing government intervention measures.
That mercantilism increases the need to accept these monetary risk factors allows some really good at it to shoot through the ranks to be rich and most to stay average or poor, just like in trading.

Thus, the inefficiencies of the trading market resemble those of the influx of mercantilism into emerging markets, with perhaps a differentiation of pure money, that is, similar to currency trading's huge leverages such as a destructive influx -- deforestation in regular-sized economies such as a third-world country; or, a more-representational view of money, that is, similar to stock trading's more grounded leverages, such as a stable, constructive influx, such as retaining and valuing small-population (tribe, other practice-isolated peoples) views as a micro-economy.
This metaphoric comparison of trading with its origin can be continued, as the less-mercantile-like currency trading is more immune to large waves of information type change and the more mercantile-like stock markets have the aforementioned waves of the 'new and improved' (Internet boom, etc.) to deal with.


Thanks again for your posts.

I think Cindy has it right. Markets have to exist for trade purposes, but being able to trade them may not always be available for us.

If the free markets are taken away from us, I think we will have bigger problems than submitting our compensation form to get the funds back from our brokerage account.

What is the proverb? Make hay whilst the sun shines?

LD.

When (not if) the One World Government arises...there will no longer be any need for a currency market.

That will be the least of your worries though. It's probably the case that the only thing which will cause people to panic enough to embrace such an idea is if the entire wold is embroiled in a global economic melt-down. We're not talking about food riots and such. We're talking about a situation far past that. Stuff not seen since Bible days.

When large populations of people resort to cannibalism in order to survive, they will welcome with open arms the "solution" provided by "Them". Can't you hear the rallying cry?

"Cast off your boarders oh peoples of the world. Only together can we drag ourselves out of this pit. Only united can we create a new world in which the planet we worship is treated properly. Only when we adopt a common vision, a common language, and a common currency can we ensure that humanity proceeds to the next stage of social evolution. Throw your lot in with the New World Order and live to see a day when you never have to eat one of your own children again."

Like I said....whether or not you can trade Forex will be the least of your problems. Running out of ammo would be a bigger issue.