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

To: elmatador who wrote (50441)	5/25/2004 12:06:45 AM
From: energyplay	Respond to of 74559

Hi El Mat- good question - Here are some moderate current factors - ******************** Remember North Americans work more hours than Europeans Usually with more capital employed per job (bigger machines) Relatively fewer subsidies than Europe - still a lot in the US. Greater willingness to take chances than Europe or maybe Singapore. Better economies of scale from larger internal market. ******************** Historical reasons - Lots of unexploited resources, some taken/bought from natives, Spain, France, Mexico, Russia. Being physically undamaged after World War II, and relatively low people killed in World War I (which really clobbered France, UK, Germany) and World War II (which changed demographics for every nation in Europe except Sweden and Switzerland) The really big reasons - the creation and exploitation of intellectual property and new products which are sold internally and exported. Culture - Finding Nemo (original) The Italian Job (remake of European film) The Passion of The Christ (widely know story) Rap Music Blues Music Rock Music Drugs - Viagra Eributin (Imclone cancer drug - product of promotion justt like some flaky gold stock from Vancouver Exchange Epocrit (makes red blood cells, specualtive biotech) Infotech - Integrated Circuits Oracle database ########################## Now as an worlwide investor, you may need to buy some shares of Intel, Genetech, Oracle, Imclone, Pixar, etc. Shares which were created out of thin air, and are now valuble.

To: elmatador who wrote (50441)	5/25/2004 12:25:07 AM
From: energyplay	Read Replies (2) \| Respond to of 74559

Here's Ralph Peters' take on national success/failure factors. Some of them match up very well with some things you, Jay and others have posted. I think he left off savings rate and a few other factors. carlisle-www.army.mil

To: elmatador who wrote (50441)	5/25/2004 8:48:02 PM
From: RealMuLan	Read Replies (2) \| Respond to of 74559

>>Can you explain why the US can do that trick? Because if you explain, it means other people, say the Europeans, can replicate and compete with the printing money. Or is there something special to the US that other countries don’t have that allow them to print 'con gusto'?<< elmat, you have raised a good question. I am not sure I can explain it, but I will try. The reasons that the US can get away with printing for free for what others have to work to get: 1. There is a high demand for US$ -- Almost all other countries have been pursued or forced to keep more than 90% of their foreign reserves as US$; 2. Many countries, like Japan, and China, are willing to support the US$ value by buying US treasury bond; 3. Many export-dependent nations just want to sell to the US that they seem do not care much whether the US can afford; 4. US$ still has the highest purchasing power, because they utilize the cheap labor all over the world, thus the US economy is still the most efficient economy; 5. US$ still has the highest liquidity; Are other nations, say the Europeans, can replicate and compete the printing money? Highly unlikely in short term for all things considered. But in long term, say 30-50 years down the road, yes it is possible in my opinion<g> How long has the US been doing all this printing? Maybe since Nixon gave up gold-backing of the US$? How long can the US keep doing the printing? Maybe another 20-30 years? until the day comes when the demand for US$ reduced; when some export-dependent countries switch to domestic consumption; when inflation running double digits; when people finally realize the US is going to bankrupt and can hardly meet its obligation<g>, when other countries currency becomes as popular as the US$, or even more popular, when the baby boomers are getting old, when the cheaper natural resources are all squandered and running out, when the social safety net (Social security and Medicare, Medicaid) in the US are not safe any more, ….. [filling your own blanks here <g>]