Advantage, Emerging Markets
How does it feel to be a has-been? Well, we don’t feel too bad about it. How about you?
Almost all the developed countries are headed for crises, collapse, and used-to-be status. Their debt is still rising. They have made promises to retirees that can’t be kept. They have expenses they can’t meet…an aging population…uncompetitive industries…and zombies on every street corner.
Who has the money? Well, the biggest piles of it are in the hands of Asian nations. Who buys more cars? The Chinese. Who buys more stuff, generally? The emerging markets. Who has the biggest economy? Ah…at least we’re not has-beens yet. The developed countries still have the world’s biggest economies. But that will change soon.
When Goldman Sachs first did a report on the BRICs, it projected out growth rates in India, Brazil, Russia and China and estimated that their economies would overtake the big 4 developed economies by 2040. Now, the estimate is 2027.
Developed countries can’t grow fast; they can barely grow at all. They have too much debt and too many zombies. Too many retirees who need to be supported. Too many government employees. Too many lobbyists and government contractors. Too many privileges and too many people trying to protect them…
Everybody wants something for nothing. As an economy ages, more and more people find a way to get it. On CNN en Español, for example, we learned that a town in Nebraska is trying to prevent illegal aliens from gainful employment. The citizens of Fremont, Nebraska, want try to use the law to prevent others from competing for jobs.
Zombies always vote.