How do you explain the very poor PPP of the USD considering its strength,
Is that the only indicator that you can look at? Obviously everything that you have to say about the US economy centers on that one indicator, which can be just as arbitrary as any inflation index you ridicule. It's a basket of goods that are measured. Place price controls on any major component of that basket of goods and you've skewed the data.
Why don't you go convert a messload of dollars into Euros and going on a low cost European vacation? That will give you an indication of what I'm talking about.
Unlike yourself, I don't look at just one indicator, nor do I have any desire to live in S. Africa where alledgedly the PPP is the most favorable on this planet. Obviously, from looking at their current standard of living and political and economic turmoil, the PPP indicator is not a particularly accurate measure of a nation's economic health.
In fact, it may equate to the equivalent of outright depression, where deflation rules, prices fall, and those who already have the money wind up buying out those who have little.
Yeah... a favorable PPP can be fantastic if you have the actual money with which to take advantage of it.
The only true indicator of economic vitality is return on capital. Because it is that return that will drive investment and economic prosperity and attract capital to your country and contribute to employing your people.
Now tell me that Japan's expected national debt of 130% of GDP, or the fact that 1 in 4 Japanese will be over 60 and in retirement within 10 years (or is it 20?), as opposed to 1 in 6 right now, are not long-term problems that will undermine the economic health of their economy? Or tell me that a similar situation of European social entitlements, far more generous than those in the US, doesn't undermine their economic stability.
Pull your nose back from the picture frame and take in the whole scene Vet.. There obviously is a credible and persuasive reason that the US economic growth has been attractive to foreign capital.
Maybe you should pay more attention to what people are actually doing instead of trying to make excuses for their apparent ignorance in doing so. Seems to me that you are making yourself out as far more of a "sexual intellectual" than anything that I have stated out here.
You presume to believe that everyone should be investing in S. Africa and enjoying that favorable PPP. But they're aren't, are they now??
Why is that Vet? |
