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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: AC Flyer who wrote (17125)	3/20/2002 6:15:15 PM
From: Maurice Winn	Respond to of 74559

Whoa there cowboy! <Are the 5 billion here in the US, living in our 4,000 sq. foot houses, driving our SUVs with their 6.8l, 10 cylinder engines, drinking our $4 Starbucks coffees? Noooo. Keep shipping the lamb chops, but don't get carried away! It's the US boomers who are driving the US boom > Jay Chen, me, my Taiwanese friends in Brisbane, friends in Britain, India and Peru, Canada, Japan have all worked, saved our nausages [Jay's accounting system], and hired US companies and people such as QUALCOMM and Irwin Jacobs who hired a lot of Indians [who have now moved to the USA] and other Americans to invent and produce CDMA ASICs and license others to produce CDMA goodies too. We have bought multibillions of $, swapping our local currencies for those US$. The previous holders of those US$ can go shopping around the global village for sheep, wine, steel, accommodation, meals and air travel. They can come to Hobbitville for example to see many teams trying to win the America's Cup. They can sit in nice restaurants and eat delicious meals which are absurdly cheap compared with USA prices. They can stay in hotels at laughable prices. We pay our Yankee employees well. So well that they can afford SUVs, $4 coffee, high-priced gasoline, large houses and CDMA phones. Our employees have done a great job and are now selling CDMA around the world. We are making pots of dough! However, some of us are getting a bit nervous about steel tariffs, lamb export restrictions, sabre rattling and are wondering whether we wouldn't be better investing in places where people will do a good job for less pay and where the markets are bigger. Say China for example. Or India. If we all decide to sell our QUALCOMM and other US stocks, then sell those US$ to buy Indian rupees to invest in CDMA in India and hiring millions of Indians to do great stuff, it would have some sort of impact on the USA. I wonder whether so many Americans would be swooping down the freeway in huge SUVs and whether their incomes would be as high. The US Boomers would not only not be driving the US economy, they wouldn't be driving their SUVs either. It's a global village. Albania and North Korean thought they could go it alone. So did China for a long time. We all saw what happened. The USA could form an Axis of Protectionism with Albania and North Korea - but I wouldn't recommend it. I don't think it's just the USA Boomers making the USA boom. There are 300 million Yanks and 6000 million Aliens. 20:1 Aliens to Yanks. That's also a reasonable P:E for the New Paradigm. Just as the British Empire did well from global trading, so does the USA Empire. That's because they use that 20:1 ratio. Mqurice