CB we used to have no real money but had a real economy. Now there's neither real money nor (according to Jay) real economy. The pieces of colored paper were useless but the economy was churning out real goods and real wealth existed.
If the whole infrastructure of a country is already in place -the canals, bridges, power plants, dams, telephone network, hospitals, universities, roads, etc,- there is not much to build. Factories will still be producing and exporting. But economic activity slows dramatically. This happened in the US and by the late 60's Europe and Japan had been already totally re-constructed.
Once countries reach this stage -totally built- they end up with more capital than economic activity. As it happened with the British Empire, they had to go out and invest in US, Canada, Australia, Argentina, Brazil and so on. Meaning, the capital has to go tot where economic activity can be created.
Today, the Europeans and the US are not following that. They are hogging the capital and being stingy with it and pulling it out to loot. As they did with LATAM in 1982 and with SEA in 1997.
Capital is so plenty -just look at how much is wasted in subsidy schemes to make believe that there's economic activities in developed countries- that capital must be dumped every where to create wealth. Put the masses of those poor countries to work hard.
The developed countries won't disappear. They have to engage in useful economic activity that they do best. They have to keep developing high tech and forming cool designers. Keep some universities for the world kids go there and get some education. Keep their countries nice and tidy, streets clean and nice. Keep their historical sites, for 2 billion people go there as tourists.
They have to become tourits destinations seat down and collect the money in this what is the most green industry of all: tourism. |
