Colleague Chris Mayer reports:
“China added more to global economic growth in 2007 than the United States. That’s the first time a country other than the U.S. pulled the bulk of the global economic sled since at least the ’30s.”
Buffett says it is not smart to sell the United States short. But selling the United States short has been a very good investment for the last eight years. Our guess is that it will continue to be a good investment, generally, over the next eight years too.
The United States is the General Motors economy – it is losing money on an annual basis, with high legacy costs, high debt, worn-out equipment, and a declining market share. Could it turn itself around? Yes. But not without a major upheaval – war… revolution… or bankruptcy.
Chris passes along another friend’s advice: “Get out of the dollar, teach your children Chinese, and buy commodities,” says Jim Rogers.
The Daily Reckoning Australia