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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 383.15+0.8%Nov 26 4:00 PM EST

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To: THE ANT who wrote (24533)10/26/2007 12:22:15 PM
From: elmatador  Read Replies (1) of 218043
 
The biggest challenge I ever took: compare apples to apples across border. I used the Marlboro cigarette well before the Big Mac index. I toyed wit the idea until Marlboro Friday 1993 struck me!

My idea -early 90's- that there weren't rich or poor countries, but inflated and deflated countries. and if rich countries deflated and poor countries inflated there would be equilibrium.

(Inflated as investment flooded in not as printing)

You remember Marlboro friday when the price od cigaretts were brought down to fight cheap brands? I saw the light that day!!

say brazil was selling then a Marlboro pack at 85 cents and Gemrnay at 4 Deutsche Mark or roughly 2 USD then. They didn't pay roaylties, neither import the tobacco or export the cigarettes.

Brazil produced 1.5 million packs and Germany 1 million.

The GDP of Germany 2million dollars
Brazil's 1.257.000

Brazil had 146 million people. Germany 62 million.
German rich Brazilian poor.

Say -just for illustration sake- German state took 10% tax on that and the country would had 200K on its coffers. Brazil would slap same tax and had only 125.7K.

Brazil: Too many people too less taxes=poverty.
Brazil had too many yuong people to live off that cigarette production.

Once Japan started deflating I told TJ that Japan would return to the insignificance it came from. I got an ear full!!!

The mechanism whereby rich countries would deflate and poor countries would inflate was called capital spread more evenly.

Also note the demographic window I keep talking about because as less children live off the production of cigarettes every individual has less unproductive pwople to carry along.

In fact the whole thing it was a book project: I'm not writer. Never bothered doing anything with it.

I used tio call it the book the end al the other books.

Today everything there is happening right here in front of my eyes. (well a lot of it is happening.)
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