Please give another example of a market that will buy as much China produced goods as in America. When you find it, please tell me so I can invest there! Hint: there is no other place in the world!
I'll give you that Japan was once (80's) a huge consumer and strong economic power, but that was then. After a 15 year recession they are starting to wake up and come alive again, but even with that said many Jap. investors are sending their capital overseas and not investing in Japan. Japan for many years has had some MAJOR problems due to over regulation and failure to let bankruptcies take hold, but that seems to have been corrected and the market is responding. I still don't see any other place on the planet where people can invest, innovate and borrow capital under relatively safe conditions as here in the US. How many high tech firms/companies has Japan produced in the past decade? The last time I checked Google was American innovation at work, not Chinese, Jap., Indian and definitely not European.
well it won't happen overnight if it ever does. japanese have never been great innovators but they have added value to innovations of others. britain was an economic powerhouse years ago before the US took over. another change at the top can happen, especially if another bush gets into power lol
The Brits. like most of Europe are socialists. Political issues/policy is what is killing that part of the world. As long as the U.S. stays business friendly and relatively free, it will ALWAYS be a strong business incubator and innovator. These days political policy is probably more important than, my only concern is that the voices of socialism gain volume and start taking hold in the U.S.. Couple that with governmental spending that's out of control, there is some concern. I do think the American worker is the most productive and innovative in the world. I agree Japan is a force, but I think over the next 20 years Eastern Europe, Korea and some smaller Asian emerging markets could show bigger gains Japan.
How about Euroland unemployment? France is sitting with a nice juicy 20% unemployment rate. I think Germany is over 8%, yeah their economies are VUNDERBAR! America created more jobs in the past 3 years than Europe has in a decade. Increase the interest rates, dry up the liquidity then the Euro will go back to .80 to the buck. There's more to currency strength than the last trade my friend. There's a reason countries peg their currencies to the dollar and not the Pound or Euro.
* US rates are much higher than Euro rates already; * higher US rates would bring nightmares to US politicians, stock investors and homeowners; * reducing liquidity would puncture the US stock market bubble immediately; So everybody knows that the US can't do anything to prevent a further decline of the $ and gets out. That's just how it is! Sorry.
I suggest that you use Google to find the answers that you ask of me. I just keyed in âBernanke Arroganceâ and got 10 pages of it â seems like many others see him that way as well. Here is the first one that appeared on the search â you can call up the rest http://moneycentral.msn.com/content/P133921.asp As for the Federal Reserve, it was easily created by an act of congress and can just as easily be abandoned. Bernanke did say in his speech of 11/2002 on Deflation: âThe Congress has given the Fed the responsibility of preserving price stabilityâ. Since the US dollar held on to its purchasing power in the 100 years prior to the establishment of the FED but lost over 92% since the FED was established in 1913 I would say that the FED has failed miserably in its primary responsibility. Here are a few links for you which again I found via a google search: http://www.worldnewsstand.net/today/articles/fedprivatelyowned.htm http://www.rense.com/politics6/fedres.htm http://www.michaeljournal.org/fedreserve.htm As for your earlier post that I recall on a fiat currency never going to zero, I would suggest that you visit your local library and read up on history. You will find that all fiat currencies have eventually gone to zero, the US dollar if history is any guide will not be an exception. In fact, even when money was based on gold and silver coinage governments have almost always found means of debasing it, whether it be by introducing copper or another base metal into the mix or reducing the size of the coins. Governments have truly shown themselves to be the greatest of counterfeiters throughout the ages. In debasing their own currency governments have also quite often sown the seeds of their own demise, for currency debasement is a common catalyst to social change, revolution and end of empire. You do understand that the money that you have in your pocket and in the bank gives you title to nothing. So how did you feel when Bernanke said in his speech of 11/2002: âLike gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflationâ¦â¦If we do fall into deflation, however, we can take comfort that the logic of the printing press example must assert itself, and sufficient injections of money will ultimately always reverse a deflation.â All his speeches in fact are so full of naivety and ignorance that it boggles the mind that this person is an economics professor. As I recall in 2002 almost every time he opened his mouth the market dropped, which is why I would imagine he kept such a low profile for 2 years thereafter. This guy really scares people. An investor investing in US government bonds after reading what Bernanke says would be almost like a Jew investing in Nazi Germany after reading Mein Kampf. As for investing in physical gold, IMO I do not think itâs a good idea for anyone without a sufficiently large capital base to do so until they have accumulated enough capital behind them. If you have or can develop an edge, now is the time to be earnestly taking advantage of all the liquidity out there, you will have plenty of time to build a diversified portfolio later. Many of the markets that we see today sprung into existence as a result of all the liquidity that was created since the 70âs following the abandonment of Bretton Woods by Nixon. They will be around for some time to come, but I would expect that many of them will eventually disappear when the excesses of the past and those that are to be created by Bernanke in the future are finally cleared through deflation. Inflation begets deflation as they say, and the extent of the deflation is relative to the extent of the inflation that preceded it.