Capital seeks return irrespective of which kind of people will deal with such capital. Long time ago, there were pre-conditions to where capital was allocated. There were some pre requisites for capital allocation.
How many people speak English, level of literacy, how many PhD’s, quantity of engineers with diplomas, accountants and lawyers, quality (or usefulness) of government. Thus capital was only hogged –oh, sorry, allocated!- to countries that had within their borders people with those skills and some other pre requisites. They also talked about ‘law and order’ but this is not necessary because without law and order you can even make more money! Siemens showed for 100 years in the telecoms sector it is very good lack of law and order.
Cut for today. Capital doesn’t give a shit about the people who’ll be dealing with it. It cares only if it can provide a return. Therefore Elroy can stop thinking that capital will return to the US and things will have another cycle. This is no business as usual. This is a new set of circumstances that makes move of capital at huge scale and permanent allocated. Give up all hope!
The bloody shirtless can operate in a way that provides return to capital. Capital treated in such manner, feels comfortable and stays there. Before the capital arrived in Brazil through one door, and leave in a bag in another. Which was the right way to do it. Even my money was safely stored abroad. No longer. Not anymore.
Since I mention the law and order thing: Today, with privatization, de-regulation and liberalization, governments uselessness is no longer a problem. In Brasilia our congress has at least 500 years of jail terms when they meet. Ok in the US it surfaces only gays or pecadillos of congressmen who like nice young ladies, but we know that under the surface there’s some backroom dealings going on with serious money involved but let’s not touch that and avoid speaking in jail terms: Fine people is another thing…
That means the damage governments used to do, is, today, attenuated.
Tell the Scandinavians to top investing hard in education. It is a waste of money, ilmarinem. There’s no return on that investment anymore. You can get a bus load of less educated and put them to hammer keyboards and they produce the same amount of return to the capital. They don’t need ergometric tables, they don’t need to heat the place, they don’t need to pay the amount of taxes. Thus they can beat the Scandinavians.
Go seek the shirtless land with something saleable and cooperate. Get your capital and invest in oranges is a good idea. That capital invested in the oranges will never ever will return to Finland. |
