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

To: AC Flyer who wrote (28118)	1/29/2003 12:37:30 AM
From: elmatador	Respond to of 74559

Hi AC! The guy writes: "Today, requirements for capital and labour fluctuate. But the developed world is not short of savings. Human capital, which consists of skills acquired through education or experience at work, is more scarce than financial capital, which is now a mere commodity." This is the same as me writing: The developed economies have capital but not economic activity, as opposed to emerging economies that have economic activity but no capital and I say that a capital flight from the US to those economies will create a super-boom. Note that the writer being from the Anglo-American axis, and writing for this community has to make the picture less gloomy saying those Anglo-countries have capacity to go out of the trouble they are in. I dispute that! And dispute it strongly! The answer was given by Mancur Olsson (which I have always brought to discussion here) in his book, that says that stable societies create collusions and special interest groups that only if destroyed, by war or revolution will start a new era of growth. Note the author of the article mentioning g the collusions between accountancy and board of directors and you get what special interest groups mean. In Asia they would call it crony capitalism, but in other quarters is called corporate governance ran amok :-) Perhaps the Nomenlaturas of the defunct COMECOM countries -back in the late 80's- were saying that Communist had a chance to survive and had remarkable capacity of adaptation too! The Anglo-Saxons don't have the monopoly of the "remarkable capacity for rapid policy responses". Or do they think the other guys are seating on their hands and have not read the written on the wall? The gentlemen agreement achieved on Breton Woods by these same Anglo-American axis has surely survived quite a long time. Now it won't hold any longer. Have you read about the G7 trying to meet and finding one of the back room deal they used to achieve, you know Plazza Accord of 1985 and business as usual after that.