1. Weak $USD 2. Higher taxes to come 3. World's lowest interest rates These policies PREVENT CAPITAL FROM FLOWING TOWARDS USA. And, where possible, drive capital AWAY! As capital creates business and business employs workers... where then are our unemployed going to find jobs? Is the government going to be the only employer? As the government produces NOTHING, where is the money going to come from to provide government jobs?
No Sh*t I don't think people realize that the Democratic and Republican administrations are the same. America is going to get screwed one way or another, the only difference is under this system people get to decide democratically how people are going to get screwed.
................................................................. And..... Cap and Trade....forced health insurance costs.....higher tax rates....insistance on military continuance.....and this list is just beginning..... And.... The lobbyists that are in control.....have no reason to change their course....They spend $millions to make $billions....and will continue until breakeven....just another business.... The polys cannot add or subtract....THEY do not teach this at Harvard.... I ncome D ebt V aluation I + D = V The US needs lots of V....mainly from entrepreneurial businesses.... And there is no policy to expunge the Japan style bad debt on the bad banks books....on and on and on.....etc.... All policies point towards a more negative equation.... We saw this coming a long time ago.... The last tool....structural tax change.....and THEY do not recognize the opportunity.... ............................................................................ The baby boomers are going to pay big time for the "levered 20+ year ride"....even though what they might save is too small....there is no reward.... And zero rates cause "risk" to get overpriced... And the interest rate trap.....What fool is going to buy a long term US bond ? What happens to a 5% bond when rates go to 10% ? Thus the trap....Ask Japan....
Isn't #1 massively positive for exporters? Moreover, doesn't it also make investment into the USA more attractive (I think maybe makloda waas alluding to this)?
http://www.ritholtz.com/blog/2009/11/ambrose-evans-pritchard-worry-about-japan-not-america/ When rates get so low....forced there by the govt.... This is a big big problem that will not go away.... More than 20 years later....it has not gone away for Japan.... And guess what....the SAVINGS rate for Japan is now less than that of the US.... Deflation....the baby boomers will be selling everything they own and then some.....just to try to get by.... The answer.... 10/5 Ctax only.... And it is because of incapable people like these individuals.... http://finance.yahoo.com/news/Summe...7.html?x=0&sec=topStories&pos=6&asset=&ccode= that the US will never see the light of day....
The share of US jobs that comes from non-bank non-US affiliates is so small its almost meaningless. The data I'm looking at shows 6M jobs from non-bank non-US affiliates, a drop in the bucket compared to the total labor force
NO. Only liars and thieves claim this, and that's mostly politicians and exporters. In theory it seems to make sense. However, the problem is that the labor wage differential between Asian and US companies is ENORMOUS! For a weak $USD to offset this differential, the $USD would have to PLUNGE to some very low level... like maybe 5 cents or 10 cents to the present dollar. If all of your "dollars" were to all of a sudden have the buying power of only a nickel or a dime, where would you be financially? Busted, right? Same for 99+% of Americans.
Money borrowed in the USA, invested in Asia, Australia, Canada... even MEXICO for christsakes! The US markets are just being carried along for the ride. Also, one must consider the currency when determining "how well the market has done". The $USD has lost 16% of its value since March. So, how well has the USA ACTUALLY done since March. Let's use S&P as example. 1. March low, SP = 666... times "1" for $USD = $666. 2. Oct 31... SP = 1036... times ".84" for $USD = $870... thats in REAL TERMS... except traders have to pay 36.5% STCG tax on 1036-666 = 370 NOMINAL point gain. 370 gain - 36.5% STCG tax = 235 after tax. Therefore, 666 + 235 x .84 = [SP] 756 in REAL terms, Oct 31. So, what happens to your "gains" and "value of capital" when the currency factor becomes .50 or .25, or .10, instead of .84? If you intend for your assets and buying power to keep pace with the currency destruction and taxes, you'd better be making HUNDREDS of percent gains... only a tiny fraction of Americans will.