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Interesting Economic Article

Discussion in 'Other Off Topic Forum' started by Tspringer, Oct 30, 2007.

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  1. Tspringer

    Tspringer F1 Veteran

    Apr 11, 2002
    6,155
    #1 Tspringer, Oct 30, 2007
    With the dollar crashing it seems people are starting to sit up and pay a bit more attention to the big picuture. I think this article does an excellent job summing things up:


    http://nymag.com/guides/money/2007/39952/



    I like this little tidbit:


    The bulls will tell you that foreign governments understand the American economy is the key to global economic health, and that they’ll suck it up and take it when we devalue their debt. To which Schiff offers another analogy. Imagine if five people were washed up on a desert island: four Asians and an American. In splitting up their duties, one Asian says he’ll fish; another will hunt, another will look for firewood, and another will cook. The American assigns himself the job of eating.

    “The modern economist looks at this situation and says the American is key to the whole thing,” says Schiff. “Because without him to eat, the four Asians would be unemployed.” The alternative: Without the American, the Asians might eat a little more themselves and even spend some time building a boat. This is happening as we speak: With the rise of the Chinese consumer class, the local citizenry is now spending, and the country is no longer totally dependent on exports. Which means they’re no longer totally dependent on us.





    Terry
     
  2. toggie

    toggie F1 World Champ
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    #2 toggie, Oct 30, 2007
    A very interesting article.
    Most of it is believable to some degree.

    I did some searching on the web for what Peter Schiff recommends on how to profit from the future crash of the US dollar.
    The tidbit I found was:
    "His investment recommendations consist largely of foreign stocks, which have higher earnings yields and pay better dividends than US stocks; gold and gold mining; and cash or liquid short-term bonds to preserve purchasing power until after bubbles have burst, when the money can be put to work at much more favorable valuations."
     
  3. ZINGARA 250GTL

    ZINGARA 250GTL F1 World Champ
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    #3 ZINGARA 250GTL, Oct 30, 2007
    Absolutely. Really nifty idea. The Chinese can just cut us off. Their kids can chew on lead tainted toys. Their pets can choke on tainted food. Why, in a few years they will have solved all their population problems. Go Mao!


     
  4. Tspringer

    Tspringer F1 Veteran

    Apr 11, 2002
    6,155
    #4 Tspringer, Oct 30, 2007
    What population problems? The Chinese have been very proactive relative to managing their population growth for the past 40 years. You don't have babies in China without permission. Besides, do you think the Chinese Govt. cares if a few tens of millions of peasants starve? Weighed against longer term and bigger picture implications such issues are mere inconveniences.

    But hey, if you need some help getting that sand out of your ears I think the Chinese make some cheap plastic implements. Check Walmart.


    Bill Gross is no fool. Neither is John Walker or Allan Greenspan. It doesn't take a rocket scientist to figure out where we are heading.




    Terry
     

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