Yes, we’re back at home, after flying around the world. It was a good trip. No problems. No hassles. Everything went well.
What was the point?
“You know, my friends and relatives in the states still believe that the US is the greatest place in the world,” explained an American in Melbourne, Australia. “They think the rest of the world is full of poor people who can’t wait to emigrate to the US. They need to get out more.”
So we get out. We open our eyes. We look around.
And what do we see?
We see a whole world full of people who are hustling and bustling…schlepping and bussing…each trying to gain an advantage…each looking for a way to get richer, faster.
The motivations all over the world are about the same. People generally want wealth, power and status. And they want to get it in the easiest possible way. But it can mean different things to different people…and they go about it differently too. In the mature economies, they look for subsidies and angles. Tax breaks. Bailouts. Boondoggles. Sinecures.
“We have plenty of corruption here in India, too,” a colleague noted. “But most people know they can’t get much from the government. They have no choice. They have to start a business or get a job.”
Nothing stands still. A few years ago, the Russkies, the Indians and the Chinese were all very helpfully sitting on the sidelines. With their goofy theories and their counterproductive policies, they posed no competition. Americans found it easy to feel superior. Half the world had tied its hands behind its back.
But in the ’70s and ’80s, things began to change. “To get rich is glorious,” said Deng Xiaoping. “Perestroika,” said Gorbachev. And now they’re all at it. Indians, Brazilians, Turks, Indonesians – they all have faster growth rates and much less debt than the developed countries. China and Turkey are both growing about 5 times faster than the US. India, Brazil and a dozen other countries aren’t far behind.
The latest test scores show Chinese math students in Shanghai far ahead of Americans. And the latest reports tell us Chinese trains are setting records – at 300 mph.
Nothing is off limits. No industry is safe. Nobody can expect a free lunch forever.
In India, we rode in a Nano, the car Tata Motors is selling for $2,500. It was a little loud…but surprisingly spacious and comfortable. For getting around town, it seems perfectly adequate. And soon it will be available in the US. How will Detroit compete with these guys on the low end? And on the high end, there’s plenty of competition too – from Japan and Germany.
“But wait…Germany is a mature economy too.”
Well, yes…and no. Germany’s factories and infrastructure were flattened in WWII. It had to rebuild from the bottom up. Its post-war government was completely new. Its currency just came out less than 10 years ago.
Besides that, a large piece of present-day Germany lived under the heel of the Soviets for 45 years. They had a close-hand look at what central planning can do to an economy.
America’s government, meanwhile, has been in business since 1776. Its economy has been the biggest in the world for the last 110 years. It was the only major combatant in WWII to come out the other end with its wartime plant and equipment intact. It has had the world’s richest people and the most gold for many years.
“Nothing fails like success,” is one of our Daily Reckoning dicta. Will it fail now, or later? We don’t know. But readers are urged to get out more…and draw their own conclusions.
for The Daily Reckoning
Since founding Agora Inc. in 1979, Bill Bonner has found success in numerous industries. His unique writing style, philanthropic undertakings and preservationist activities have been recognized by some of America's most respected authorities. With his friend and colleague Addison Wiggin, he co-founded The Daily Reckoning in 1999, and together they co-wrote the New York Times best-selling books Financial Reckoning Day and Empire of Debt. His other works include Mobs, Messiahs and Markets (with Lila Rajiva), Dice Have No Memory, and most recently, Hormegeddon: How Too Much of a Good Thing Leads to Disaster. His most recent project is The Bill Bonner Letter.
yeah, ok … correct !
but Europe is best at Saving the Planet !
in Cancun (going to Cancun on holiday is very bad, but going to Cancun to talk about how bad it is to go to Cancun on holiday is good) all the new economies are laughing all the way to some economic and social progress, while the old economies are doing their utmost to prevent just that …
where did we deserve that ?
Parachute journalism has its own perils:
“Though car sales have shot up across India, because of an economy that is growing at nearly 9 percent annually, sales of the Nano have been falling for the last four months. Its maker, Tata Motors, sold only 509 Nanos to its dealers in November — a stark contrast to the 9,000 it delivered in July. Last year, when media coverage and auto writers’ praise were stoking demand, Tata had orders for more than 200,000 Nanos, which has a list price starting at about $2,900. . . .
But the Nano has been troubled almost from its inception. The company’s production plans were thrown off kilter in 2008 when farmers, led by regional politicians, protested that the state of West Bengal had forcibly acquired land at low prices for a factory where the Nano and its parts would be made. Tata had to relocate the factory to another state, Gujarat — causing it to take more than a year and a half to fill orders for the first 100,000 cars.
More recently, the Nano has been hurt by reports of fires in a handful of cars. In one widely publicized instance, a family was taking its new Nano home from a dealership in Mumbai when smoke started billowing from the back of the car. Soon, the entire car was engulfed in flames. There were no injuries — other than to the Nano’s image.”
Pingback: Cheats for Poptropica()
For of all John Law’s faults, he at least understood that he who holds hard assets wins the day. Addison took the liberty of grafting supporting evidence together from his book with Bill Bonner, Financial Reckoning Day. Read on to see how originators of some of the worst ideas can give us some good ones too...
Is arthritis really genetic or is there something else at the root of it? Stephen Petranek lays out the compelling science and a disturbing connection between red meat and arthritis.
Our friend David Stockman took to the airwaves yesterday to deliver one message: The “ill gotten” stock market gains of the last few years are going to end badly. When they do, it will be America’s long-awaited day of reckoning…
The Greek stock market is down 36% year to date; the risk of global contagion in the event of a Greek exit is very real. Ordinarily such a crisis would require a massive coordinated effort from global stakeholders, perhaps directed by the IMF or some other pan-national financial body. But not in this case. Mark O’Byrne has the full story…
Remember, the great commodity boom took more than a decade to play out. Prices skyrocketed across the board. But what goes up must eventually come down. Gold and silver lost their wings in 2013. Copper went into a death spiral late last year. And I don't have to tell you what's happened with oil over the past six months...