Goldsnow,
What is riskier? Investing in Japan where they are running a per capita budget deficit larger than the US AND are CURRENTLY in a major liquidity trap that can only be resolved by MASSIVE DEVALUATION of the Yen (printing money) to shock it out of its lethargy??
Investing in Europe, where decades of high wages, socialist governmental inefficiency, and lower productivity have made their goods less competitive in the global marketplace and burdened them with higher budget deficits than the US as well as a double digit unemployment rate (10%)? (Oopss... forgot to mention that Europe is still trying to integrate the former communist nations into their economies as well...)
Or investing in the US where: technology has provided significant gains in productivity, unemployment has remained relatively low, the banking structure sound (certainly in comparison with the rest of the world), possesses an Ecommerce technology that is still in its infancy yet ahead of other nations, is paying higher interest rates than the rest of the world, thus yielding higher returns on investments here, .... etc, etc, etc.
Sure you can make the worst case in the world for the US economy.... SO LONG AS YOU IGNORE THE FACT THAT THE REST OF THE WORLD IS FAR MORE SCREWED UP THAN WE ARE....
But those folks know full well that when Japan is forced to reinflate their economy, the worst place for their assets will be in Japan since the Yen will be devalued by at least 50%. So they'll be looking for a safe harbor here in the US.
Regards,
Ron |
