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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 387.98+1.3%Nov 28 4:00 PM EST

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To: TobagoJack who wrote (38958)8/18/2008 8:58:47 AM
From: elmatador  Read Replies (1) of 218072
 
Industrialized countries hollow up. Become third world TJ, we are seeing the first after effects of 25 years of industrialized countries hollow up.

Manufacture faced with migrate or evaporate decided to move. Industrialized countries were left with capital, technology and expertise (not to mention huge promises to its baby boomers to fulfil. See GM Ford and airlines)

As the demographic makeup changed, emerging markets started being the locomotives of growth. The industrialized countries ended up with its economies with 30% of all economic activities and profits being finance sector.

They kept dominance because the expertise in finance and control of convertible currencies give the upper hand. Thus they could artificially start crisis that carried out huge capital flights from countries trying to growth into their economies. See flight to quality.

The flights to quality only exacerbated the nefarious effects of capital hogging in a constant feedback creating bubble after bubble.

It came to a point, that the only way to create growth in an industrialized co8uintry was to dole money out via negative interest rates, which created the straw that broke the camel's back. See housing bubble and its ensuing subprime crisis.

Today we see less and less room for an industrialized country to keep an economy basis that would support the standard of living. As the emerging markets grow, we see the market dictating what a country can be good of.

Case in point the US becoming a commodities exporter as its industry had moved abroad. The effect will be the young generations in industrialized countries seeking to migrate out for three reasons:

One: needs to support an older generation
Two: high costs of living
Three: Lack of opportunity

TJ, get ready to the Japanization and Anglicization of the world.

The UK de-industrailized and the Japan devoided of population has not any engine of growth.
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