Comments on: Land of the Lost Decades http://dailyreckoning.com/land-of-the-lost-decades/ Entertaining Ideas on the Economy, Markets, Gold, Oil and Investing Strategies. Sun, 21 Mar 2010 03:53:04 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Amorim http://dailyreckoning.com/land-of-the-lost-decades/#comment-18343 Amorim Wed, 12 Aug 2009 13:01:15 +0000 http://dailyreckoning.com/?p=17756#comment-18343 Hello, In your previous post you said: "When you borrow money you take something away from the future and bring it into the present. That is not a bad thing…if you are doing it to increase your future output. In that case, you’ll be able to pay back the loan with your extra earnings. But if you borrow from the future only to consume, the future waits for you…" OK. I agree. But if you borrow money to increase future output someone has to increase its future consume, otherwise we have an excess of production crisis. Right? How do we find a perfect balance? Hello,

In your previous post you said:

“When you borrow money you take something away from the future and bring it into the present. That is not a bad thing…if you are doing it to increase your future output. In that case, you’ll be able to pay back the loan with your extra earnings. But if you borrow from the future only to consume, the future waits for you…”

OK. I agree. But if you borrow money to increase future output someone has to increase its future consume, otherwise we have an excess of production crisis. Right? How do we find a perfect balance?

]]> By: Rabid Lemming http://dailyreckoning.com/land-of-the-lost-decades/#comment-18334 Rabid Lemming Wed, 12 Aug 2009 11:38:51 +0000 http://dailyreckoning.com/?p=17756#comment-18334 TC is right on the mark. The Banksters and Government Jokers are in the process of looting the coffers. One disaster or engineered disaster is all it will take to bring the US to its knees. The disaster that is the California deficit is only a precursor of what is to come for the whole country. This is a war and in war nothing goes as planned, prepare for everything. TC is right on the mark. The Banksters and Government Jokers are in the process of looting the coffers. One disaster or engineered disaster is all it will take to bring the US to its knees. The disaster that is the California deficit is only a precursor of what is to come for the whole country. This is a war and in war nothing goes as planned, prepare for everything.

]]> By: Sayonara http://dailyreckoning.com/land-of-the-lost-decades/#comment-18314 Sayonara Wed, 12 Aug 2009 07:37:45 +0000 http://dailyreckoning.com/?p=17756#comment-18314 "We can use money we don't have". To prove this "We can use money we don't have". To prove this "We can use money we don't have". To prove this "We can use money we don't have". “We can use money we don’t have”.
To prove this “We can use money we don’t have”.
To prove this “We can use money we don’t have”.
To prove this “We can use money we don’t have”.

]]> By: Bernardo http://dailyreckoning.com/land-of-the-lost-decades/#comment-18266 Bernardo Wed, 12 Aug 2009 01:12:08 +0000 http://dailyreckoning.com/?p=17756#comment-18266 This time US can´t support any war because it don´t have resources to pay for. His Army are overextended and all countries are exahusted. This time US can´t support any war because it don´t have resources to pay for. His Army are overextended and all countries are exahusted.

]]> By: Bernardo http://dailyreckoning.com/land-of-the-lost-decades/#comment-18263 Bernardo Wed, 12 Aug 2009 00:52:53 +0000 http://dailyreckoning.com/?p=17756#comment-18263 I´m still thinking World Economy won´t bear 10 years of winter US Economy, there aren´t any country to replace it, then People won´t resist 2,3,5 or 10 years, they have to eat. Retailers too. Remember XIII century, when kingdoms want People pay all debt for wars and disease, riots began in all Europe. I´m still thinking World Economy won´t bear 10 years of winter US Economy, there aren´t any country to replace it, then People won´t resist 2,3,5 or 10 years, they have to eat. Retailers too. Remember XIII century, when kingdoms want People pay all debt for wars and disease, riots began in all Europe.

]]> By: Fonzarelli http://dailyreckoning.com/land-of-the-lost-decades/#comment-18247 Fonzarelli Tue, 11 Aug 2009 23:01:00 +0000 http://dailyreckoning.com/?p=17756#comment-18247 So what would Bill recommend investing in? Cash/Bonds etc? What about threat of default? What does that leave? Foreign equities? If our markets tank - which I exect they will - the past year as a guide is foreign equities will fall HARDER. So what would he recommend in such a deflationary period? So what would Bill recommend investing in? Cash/Bonds etc?

What about threat of default? What does that leave? Foreign equities?

If our markets tank – which I exect they will – the past year as a guide is foreign equities will fall HARDER.

So what would he recommend in such a deflationary period?

]]> By: Jason http://dailyreckoning.com/land-of-the-lost-decades/#comment-18246 Jason Tue, 11 Aug 2009 22:46:18 +0000 http://dailyreckoning.com/?p=17756#comment-18246 TC, that sounds too bleak. Rather, I would suggest that the US is able to produce enough for all of its citizens; the economy today was designed for earlier times, for a different reality, we will continue along just fine, and eventually, someone will devise a better way to manage the production and distribution of the essentials that reflects the new technology and changes in society. TC, that sounds too bleak. Rather, I would suggest that the US is able to produce enough for all of its citizens; the economy today was designed for earlier times, for a different reality, we will continue along just fine, and eventually, someone will devise a better way to manage the production and distribution of the essentials that reflects the new technology and changes in society.

]]> By: TC http://dailyreckoning.com/land-of-the-lost-decades/#comment-18245 TC Tue, 11 Aug 2009 22:37:07 +0000 http://dailyreckoning.com/?p=17756#comment-18245 Yes 19 years if de-leveraging goes in a straight line. But human affairs never do. They are punctuated by disruptions, black swans, which distort the straight line big time. Some of the disruptions that may come: - Desperate, another bubble is engineered and everybody jump in. - US get into that old habit again - war. A big one. "Nothing fixes like war!" - A major scientific discovery that changes the ball game. - A historic natural disaster that hit high population areas. Or none of above happens - we straight-line 19 years. At the end of which China becomes the true new superpower clipping the US in all areas. Loaded by ever faster compounding debt the US goes into sovereign default, civil wars and national break up. It becomes what China was back in 1900. Yes 19 years if de-leveraging goes in a straight line. But human affairs never do. They are punctuated by disruptions, black swans, which distort the straight line big time. Some of the disruptions that may come:

- Desperate, another bubble is engineered and everybody jump in.

- US get into that old habit again – war. A big one. “Nothing fixes like war!”

- A major scientific discovery that changes the ball game.

- A historic natural disaster that hit high population areas.

Or none of above happens – we straight-line 19 years. At the end of which China becomes the true new superpower clipping the US in all areas. Loaded by ever faster compounding debt the US goes into sovereign default, civil wars and national break up. It becomes what China was back in 1900.

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