Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (118499)	6/6/2005 8:27:28 PM
From: Ilaine	Read Replies (1) \| Respond to of 793738

Okie-dokie, but please tell me which currency is going to take the place of the US dollar? Euro seems to be falling on hard times. Chinese banks admit to $500 billion in bad debt. What's left? Thai baht? Rupees? Further, please explain what percentage of GDP spent on taxation is too much, and too little. Give three examples. And, for extra credit, explain exactly why the present ratio of household debt to equity is unsustainable.

To: carranza2 who wrote (118499)	6/6/2005 9:40:42 PM
From: aladin	Read Replies (3) \| Respond to of 793738

C2, We are headed for an economic perfect storm of epic proportions. Whether it will happen in 3 or 5 years, who knows.. We usually agree on a lot of FP issues, but I guess on financials we will have to agree to disagree. Your position, like many others lately, is that the sky is falling. Well at least if you say it often enough - something will happen and you can claim victory. The reality is I have been hearing this crap since the 70's when we got ourselves into a great funk over energy and had a President who told us to just wear sweaters... Just before all this the 'Club of Rome' told us the world of cheap energy was ending and all hell was going to break loose. Looked pretty good when some oil countries took advantage of that group-think and raised prices to put us over a proverbial barrel. Then came the Japanese years - they save more than us, they work harder, they export more - yada yada yada. Whatever happened to the Japanese threat? Now as to a possible real-estate bubble. Perhaps, but more likely a regional event - say SF/Silicon Valley or NY Metro or similar (which is cyclical and has been happening for decades in some markets). Basically we have a country of almost 300 million moving to 500 million over the next 40 years, Japan's boom imploded not just because of market conditions, but also because of declining demographics. Demographics rule and over the long term real estate is a good investment. Is it good in SF? Who knows? But good across a cross-section of the Country - absolutely. What's it now? China and India will bury us just like the Ruskies did... My answer - see Japan for China. For India - you may actually have the next great power. They have technology, education, language skills and demographics. If they could just tame their bureaucracy... Notes: You should really count IRA and 401K money with the savings. It shows a much better picture. Deficits are relative - ours is less than the EU's or most Asian economies. This is as a percentage of GDP and for overall debt. Trade Defecit - yes it does exist. Maybe we should stop trading? Or maybe we should read the following: freetrade.org John@theworldisnotending(atleastfromthis).com