08/05/10 Ouzilly, France – Want to know how to make money in this economy? You do it by selling things to markets that are growing. Exporting, in other words. China’s growing. India’s growing. Brazil is growing. Dozens of other countries are growing. Sales in the US aren’t likely to go up. But sales to China? Sales to Brazil? That’s where the money is.
And here’s something interesting – these growth economies are now largely ‘de-coupled’ from the US. They don’t need us anymore. We’ve done our part. Thanks to clever management by the feds, Americans went deeply in debt so that these emerging market economies could grow. They put up factories. We bought their output. They logged a sale. We added a debt.
And now, we can’t continue. We’ve taken on all the debt we can handle. They’ve got their factories, their capital and their skilled labor. We’ve got debts, debts and more debts.
And now they don’t need us. Because they can sell to their own emerging middle classes. China can sell gizmos to Brazil’s new consumers. Russia can sell energy to China’s thriving cities. Brazil can sell soybeans to Indonesia’s new factory workers.
Emerging markets are growing fast. The US and the UK are barely growing at all.
Bill Bonner
for The Daily Reckoning
Bill Bonner
Since founding Agora Inc. in 1979, Bill Bonner has found success and garnered camaraderie in numerous communities and industries. A man of many talents, his entrepreneurial savvy, unique writings, philanthropic undertakings, and preservationist activities have all been recognized and awarded by some of America's most respected authorities. Along with Addison Wiggin, his friend and colleague, Bill has written two New York Times best-selling books, Financial Reckoning Day and Empire of Debt. Both works have been critically acclaimed internationally. With political journalist Lila Rajiva, he wrote his third New York Times best-selling book, Mobs, Messiahs and Markets, which offers concrete advice on how to avoid the public spectacle of modern finance. Since 1999, Bill has been a daily contributor and the driving force behind The Daily Reckoning. Dice Have No Memory: Big Bets & Bad Economics from Paris to the Pampas, the newest book from Bill Bonner, is the definitive compendium of Bill’s daily reckonings from more than a decade: 1999-2010.
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What? can you only make money by selling to another country?
What is magic about a border?
Well we don’t need them anymore either. We’ll just have to go back to making things and buying things right here in America.
Do you think the stupid American public will finally connect the dots and see that they’ve been had by their corporate overlords and corrupt politicians from both parties? All this under the guise of free trade to make the Walmarts and the Targets owners rich while the vast majority suffer with unemployment and financial ruin. Run along now and buy your shoddy Chinese goods.
The author is right! We should sell more to emerging markets. We are loosing way to much opportunities there. European companies are all over those markets, owning big telecom and energy stakes. Brazilian economy is grown like no other, 8-9%, and with the world cup and olympics, they should spend even more. It is time to sell and go after those markets. But we need to hire locals to do that, not go thinking they will simply buy from us.
Sour grapes…