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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (28786)	9/11/1999 11:07:00 AM
From: Riskmgmt	Read Replies (1) \| Respond to of 50167

Ike: I find that wherever the world has shrunk as a result of a daring feat of an explorer or someone who thought it is round or someone who was killed for telling the truth, we have seen a great leap forward (not the Chinese communist revolution style). here we are at the turn of next century and I think shrinking distances are going to change the fortunes of mankind, So true and it is really refreshing to read your world view. You should write a book on what you have outlined in the last postings on the subject. I recommend to you, the book "Megatrends Asia" by John Naisbitt. In it he outlines why Asia is growing faster than Europe and is going to be a force to reckon with in the 21st century. In my own travels to Europe and Asia I have come to similar conclusions. While I love to visit Paris, London and other European cities I would not trade any of them for my US base. Telephone charges are one example, as you outline. petrol (gas) is another. About $5 now in the UK, higher in Italy and of course most of it is tax or bureaucratic "add ons". Airfares are still regulated and are very expensive compared to the US. All of these combine to LIMIT THE ABILITY TO TRAVEL AND COMMUNICATE. These things are essential in the global economy. Taxes of one sort or another, like VAT not only an expensive 17.5% but a book keeping nightmare, eating up enormous amounts of otherwise productive time. I believe it was Andy Grove who said were they just starting today they would set the company (Intel) up in the Cayman Islands. He was referring to the high tax and regulation compliance here in the US. However, compared to Europe the US is an entrepreneur heaven. Why would a Bill Gates or Steve Jobs struggle in Europe when he can be here in the US. In summary, I think your thesis is absolutely correct and well worth consideration. It impacts where we invest because investing one's money is a vote not only for the company but that companies environment. Some European multi-nationals, though based in Europe, are clever enough to take advantage of different world locations to get the maximum benefit and minimum hindrance for the governments of their host country. My view is that Europe has to change and fast or be left behind. Britain is a classic study on how take a world power,a first class economy and the highest standards of education and living and strangle it with over regulation and taxes. If Maggie Thatcher hadn't arrived with the mouth to mouth and the oxygen it may well be dead by now. No doubt, as you have so well explained America is the place to invest and the companies such as Microsofts, Intel and Cisco are creating wealth and changing the world today. 20 years from now it might be China and Asia. They do not have the burdens of a welfare system or some of the other ideas we have taken from Europe, (like capital gains taxes). Getting back to investing. I shall do as you suggest and post some option ideas in my next post. best of luck, Ray