a lot of people are far worse off than they were ten years ago..
think I read that now in Indonesia 80 percent of population living now in poverty for instance..look what is happening to the Russians..look what is happening to the Japanese,look what is happening to the people in Latin America..
Even a larger number of people are actually far better off... for starters, the medical advances and medicines are allowing people to live better lives, that in the past was not possible.
I am more familiar with Latin America than I am with the other countries you have mentioned.
In Latin America, people are better off, from the point of view that democracy, while not as established as in the US, it is now a reality.
The middle class continues to grow and have far better standards of living. Yes it is true that there is a lot of corruption by the local politicians, and therein lies the key, a lot of resources are lost to these thieves, resources that otherwise would be placed to far better purposes.
As for Russia, well, after what ? 70 years of communism, you can not all of a sudden and instantaneously create the environment of a free market, frankly any bitching coming from the Russians the Communists should respond to.
The best system, (IMO) is the free markets, but even free markets can not work their magic under environments of total corruption (Latin America, and Indonesia), and total chaos and lawlessness (Russia).
What is happening in Japan is that a number of bankers and insurance companies issued loans that should have not been issued, similar to the S & L crisis in the US.... The US took the measures that needed to be taken, the Japanese refuse to do so. (so far).
Moreover, the Japanese government has imposed a number of taxes on capital assets that so far they are there, no one in their right mind are going to invest there, again... imo.
Read this :
......The slow-motion bank run Japan has been going through could be easily remedied by having the central bank buy far more securities, through open market purchases or the discount window, paying for them with new cash. Japanese banks would not necessarily have to use added reserves to make more loans, but could also put more cash in circulation by buying securities. A more expansionary monetary policy would directly meet the demand for liquidity, including currency hoards, thus greatly alleviating the painful process of asset liquidation.
Why doesn't the Bank of Japan do this? One reason may be the dangerous 1930s fallacy of thinking that low nominal interest rates are a sign the central bank has done all it could. Another obstacle to securities purchases is Japan's exaggerated concern that a genuinely accommodative monetary policy might devalue the yen, infuriating the U.S.
Meanwhile, the government of Japan, threatened with a lower credit rating, is reluctant to offer deep and permanent tax cuts, which it believes would undermine future budgets. The resulting policy paralysis is entirely unnecessary, the consequence of viewing
available options only in macroeconomic terms. Japan and its critics look at monetary policy only in terms of interest rates, and tax policy only in terms of budget deficits. They need to pick policies from a bigger menu than that, including judicious use of targeted
tax incentives........
Then......
"......The first tax mistake took effect in late 1987, when sales of land were subjected to a capital gains tax of up to 85% if the land had been held for less than two years. Aside from preventing land from being transferred to more efficient uses, this greatly reduced
the liquidity of land as an asset, and thus depressed land prices.
The second tax blunder was more serious. In 1989, in response to a political insider-trading scandal, Japan's parliament introduced a new 26% capital gains tax on stocks. Naturally, this extra tax on future returns made Japanese stocks much less valuable.
And in 1992, Japan's Ministry of Finance came up with a new national tax on land values, in addition to local property taxes. According to Hiromitsu Ishi, one of the leading architects of this new land tax, the objective was "to seek an effective policy with respect to reducing land prices." Indeed, the value of Japanese land has fallen every year since this tax was put into place. Since land was an extremely important corporate asset, the land tax was also quite effective with respect to reducing Japanese stock prices.
Capital gains in Japanese stocks have been so rare since they became subjected to the 1989 tax that eliminating any capital gains tax on stocks would obviously involve no revenue loss worth measuring. Revenues would also be unaffected by ending the prohibitive tax on short-term capital gains from land sales, since that tax was clearly
designed to ban virtually all such deals. The 1992 land tax had the intent and effect of reducing land values, which means it has actually cost Japan's treasury dearly through its visibly destructive effects on the banking system and economy.......
Then.......
.....Once Japan's economy was restored to even reasonably good health, the rest of Asia would stand an excellent chance of bouncing back. Once Asia's industry recovered, that would boost sales and prices of oil, metals and other raw materials from troubled commodity-exporting countries, such as Australia, Canada, Chile, Indonesia and Russia.
And if the world economy was thus returned to some semblance of normality, that could bolster the sliding stock prices of U.S. companies involved in global production, sales and finance.
The psychological impact of ending Japan's 1987-92 tax assault on asset values would be promptly reflected in newly euphoric financial markets world-wide. Japan's depressing atmosphere of malaise and retrenchment would be turned around in a matter of weeks, not years.
The full article here:
#reply-5750506
and see this:
#reply-5766276
In addition, I have a personal friend who is Japanese American, and the side of his family that is Japanese, tells him that the majority of people are not "suffering they are simply are not taking more vacations".
His words, not mine. But I trust such accounts more than exaggerated newspaper headlines designed to play on the psychology of weaklings to sell newspaper.
And I can go on...... No the world is not falling apart, we are simply suffering of political and insiders corruption galore, (which admittedly is far worse that whatever goes on in the US.
Now.... as I write this the Clinton tape has ended... and quite frankly my dear, (to quote an a famous actor),.... it is all rubbish, no major catastrophic disclosure.
This tape is worse than the worst Italian Spaghetti Western, (Clint Eastwood's excepted).... hype like a bad penny stock ...
Come to think of it..... it is laughable, and all those zealots of the extreme right have been exposed and have absolutely NOTHING on the man.... It was not even XXX rated as many suggested.... all rubbish. Indeed an expensive one... 40 million plus... a primate example, (as in APES), of our "leaders".....
Market is almost even, the long bond is at 5.104%
Nope.... I think it is another Christmas ghost.....
See: #reply-5468042
The biggest thing today has been the uncanny ability of President Clinton, making the entire Circus of the extreme right look like a bunch of dunce hat wearing morons.... ha, ha, ha, ha....
And this come from someone who is not particularly a supporter of the man, but given the options, I would rather deal with the likes of him than the thirteen century inquisition of zealotlandia...more ha, ha's.
Why am I saying all this ?
Because the possibility of a Clinton impeachment was the only possibility of a substantial, (and continued), increase in the Price of Gold.
Such possibility, in my opinion, was killed today.... turbulence will continue for a while, (we need panic, which has not been with us yet).
But I do believe the worst is over.... and as I have said in the past, if I am wrong.... well, I will see you at the soup kitchen of the local mission, I will be the guy with the striped pajamas....
He, he, he, he...... |
