B, I'm an armchair investor, but I can actually claim some expertise in the area of technology, where it's taking us, etc. I've worked with and helped many tech startups, as well as the big guys, and have some technical training myself
The Internet and computers--all this is very exciting, and it won't stop. But it's hard for me to say that the changes taking place today are more revolutionary than, say, when Bell patented the telephone, when Ford began selling cars, when the wright brothers learned to fly, when radio communication became a reality, when television entered our homes etc.
Humans will continue to progress. That's a constant.
But I also think it's a constant that politicians will want to extract more than the economy can reasonably give them. When taxes become unpopular, they will resort to deficits. When deficits become too high, politicians will resort to inflation and currency debasement. When the market figures out it's been taken as a result of holding this debased currency, an asset bubble will be created (effectively convincing people they have more than they do, and front loading tax revenues in the meantime).
Always distinguish between the real economy and financial instruments. The dollar, bonds and even stocks, are largely a product of government and government intervention, not the real economy. |
