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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: KyrosL who wrote (48348)	4/9/2009 11:00:02 PM
From: rich evans	Respond to of 217695

National saving= private savings - budget deficit. National Savings= National investment = private investment- trade deficit. These equations from Bernankes book on Macro economics show that a trade deficit is good as it offsets our budget deficit and leads to investment in the US by foreigner which make up for are low investment caused by budget deficits and our low savings rate. That is what has kept us going the past 3 decades. Look at the figures on foreign investment in the US especially our treaury bonds financing oiur budget deficits which havebeen by China , Japan etc. Let the good times roll again with foreigners money. Rich

To: KyrosL who wrote (48348)	4/10/2009 3:03:32 AM
From: elmatador	Read Replies (1) \| Respond to of 217695

When wastrelism and capital misslocation stop. Consumeirism has diverted capital to produce the wrong type of goods. This capital should have been employed productively in the last 4 decades. Building roads, bridges, dams, telecommunications networks, power plants, extending airports' runways, improving harbors and opening cannals, building houses, sewage and clean water systems, tractors and truck factories, opening mines... The list is immense Wastrelism down is excellent news as this capital will be sent to the emerging markets where the Demographic Window is wide open. Note that danger of commercial real estate in OECD countries as money going to Shopping Malls stops flowing. Note paper Tiger Ireland experiment in capital hogging.

To: KyrosL who wrote (48348)	4/10/2009 3:17:03 AM
From: elmatador	Respond to of 217695

"...US has passed an “inflection” point, marking the end of an acceptance of conspicuous consumption that he traces back to the Reagan presidency of the early 1980s" globaleconomicanalysis.blogspot.com It is important to note that the consumeirism a.k.a wastrelism can be traced to policies to create artificial wealth after the collapse of Bretton Woods during the early 70s. The consumeirism was financed by fleecing the rest of the world by milking the USD as reserve currency. <<The end of easy access to consumer credit will, he argues, lead to “thriftiness” focused on “value”, rather than “frugality” focused on low prices.>> Idem above This has ended. It is a structural, it is not cyclical and as such will never ever will return to the previous level.