Hi KyrosL, <<So, you think Asia can switch easily from export (to the US)-led growth to domestic demand growth?>>
No, I do not think it will be easy, but it is being done, and with gradual but steady success, as Asia ex-Japan gradually fall into natural historically ordained order after a 250-year hiccup, just is and simply will be, else the world will systemically fail.
Japan? What about it as it gushes cash, patents, and is drained of people, and thus domestic demand?
<<You think you can change overnight the Asian urge to save to an urge to consume?>>
No I do not think it will be overnight, but again, it is happening, saving and consuming, causing more production, more savings, more investment, and gad, more consumption. The charts say it all.
<<Or maybe the government will build lots and lots of highways and bridges>> Yup, this is happening, but not <<like in Japan>> because Asia ex-Japan can used the previously non-existent or short in supply infrastructure. The waste that goes with productive infrastructure construction is simply and just a cost of construction, nothing more, easily financed by Japan, aided by Greenspud’s rate plays, and finally, tied around Japan’s ankles, followed by a gentle shove and a loud splash. The script is playing on track.
Chugs, Jay |
