On a grand global scale what is happening is not much different then the small city in Mexico where I design tourism projects.....The mayor and his cronies take of 10-15% of off the top of every investment for personal Mercedes and the like and the infrastructure of services for the whole town deteriorates as it grows...In a similar sized city in Canada where I live that % of money for each project goes into a pool of money Called a Development Cost Charge Fund to improve the commons!
The fact that the above is true, and sometimes worse, does not mean that:
1. Such is the way Capitalism works.
2. Capitalism "allows" for corrupted leaders to get away with such antics.
3. The solution is NOT yet a different form of robbery... i.e. rampant taxation for the "good of the many", at the expense of the few.
The functions of government "should be" as follows:
A. National defense (should nations "must" exist).
B. Domestic Security. i.e.: Police
C. Court System to enforce the laws.
Any expansion of government functions from the above is a waste of otherwise productive resources.
Education of the citizenry is a very important part of society that should teach the value of creating an environment of equal opportunity for all, increasing levels of culture, knowledge, and the best way for the utilization of economic resources.
In other words, keeping the public educated and informed, in order for them to be educated to insist from society that a safe and free environment should be obtained, however on the basis of free choice and based on MARKET FORCES, (and choices).
Idealistic... maybe, but it beats the hell of simply, (and mindlessly), collecting taxes passing control of many tasks to a bunch of bureaucrats whose eventual single purpose is figuring ways of perpetuating their own jobs and frustrating PRODUCTIVITY.
I agree with the premise that we are facing a period of enormous productivity, largely due to the improving technology that will make many of the current jobs/tasks more efficiently.
I do not believe the Canadian system to be an ideal system at all, example, the medical system, I wonder why is it that many Canadians come to the US to receive medical treatment.
Canada is a vastly rich country in natural resources, but the resources alone will not make you rich, (or give you a strong currency). You must have the technology to develop such resources, efficiently, and a market large enough to take advantage of both (the resources and its efficient processing).
Mexico is also a natural resources rich country, but their leaders, infrastructure and general level of education is worse than a basket case. Is labor cheap in Mexico? Relatively, only specific jobs give that advantage, but you also need SKILL (the currently marketable type) to become rich and effectively productive.... hence a strong currency behind you.
The United States, in addition to natural resources, skilled labor, has something called ENTREPRENEURSHIP.
This is what makes the US a strong country, (and a strong currency).
Yes, there has been (and still there are), a lot of mistakes made, and continue to be made, but overall, and in comparison, the free enterprise system is what makes the difference, together with the fact that overall the US is an extremely rich country.
All the GOLD, SILVER, PLATINUM etc. etc. is NOT going to give you a strong currency.
It is true that excessive debt, and indeed debt for idiotic purposes (read, the good of the many, never mind how the hell we will repay it....) does create a big drag and negative cloud in the horizon.
However, these problems not only are being addressed, they are slowly being identified and SLOWLY, not repeated again.
In addition, there is no country in the world that has the SPIRIT, CONVICTION, and indeed the RESOURCES to turn a temporarily negative situation into a solution.
Examples:
Japan..... They are not even CONVINCED, that they need to change and modify their antiquated patronizing system.
Germany..... Are they really going to be capable of having "bought" a country, can they now pay for it? Can they also (at the same time), "patronize" the rest of Europe, i.e., NOT do what it would take in order to bring up to par the half of the country they just bought, in order to comply with European Unification?
Mexico.... Will they really follow through with their continuos "promises" of "corruption cleaning" before the entire country is overridden by their own population growth (particularly within the poor and destitute...) Let's not forget, boys and girls that this is only the southern neighbor to the US...hmmm interesting, puzzling and indeed conflictive situation here... I wonder if religion would have something to do in this little "detail"...
From a perspective of alternatives, I believe that the US Dollar will continue to be the strongest currency in the world, (and the most attractive place to invest), by the simple relationship of risk/reward ratio. as opposed to investing in other places.
Africa, in my eyes holds a bright promise, particularly if these events could be solved.
1. South Africa sets an example that black and whites alike can work together.
2. Religion fundamentalism is eliminated in North Africa (Argelia, to name one example).
3. Enough "home grown" talent can be put to work in an environment of honesty and .... yes free enterprise.
If such is the case, then the US will look even better because the US will have the resources to assist (in a system of free market, not government gifts), to propel Africa to better and brighter future
In fact Africa's development would benefit the entire world as companies would be willing to take the plunge. Again I must emphasize that the free enterprise market system must be allowed to work.
Taxation and more bureaucrats ARE NO SOLUTIONS, on the contrary, they will only arrest progress.
Oh and one last thing, better leaders please..... Sex starved morons make terrible leaders.... However, religious self-righteous arses are even worse, we MUST do better indeed.
Anyway....
My opinion only... I will now step down from my soapbox.
Z.
p.s. Mortgage = DYING DEBT. NOT DEAD DEBT.... there is a difference, debt used wisely and for productive assets, as time passes ,(and productivity is improved), debt is being killed. Result is good.
Inflation dead?...... live in Seattle (I do not), then answer question.
However, I do believe interest rates will continue under [downward]pressure
Oh, and before I forget..... Greed is good. unethical behavior is a different question. Do not flame me for this, it is only my opinion.
England -Vs- Romania... About to start.... The greatest World Cup ever. (in spite of the USA being eliminated... buuu huuu sniff, sniff....) |
