Comments on: Inflation Protection at 1% http://www.dailyreckoning.com.au/inflation-protection/2008/12/05/ An independent perspective on the Australian and global investment markets Mon, 22 Mar 2010 11:41:53 +0000 http://wordpress.org/?v=2.8 hourly 1 By: Greg Atkinson http://www.dailyreckoning.com.au/inflation-protection/2008/12/05/comment-page-1/#comment-55682 Greg Atkinson Fri, 05 Dec 2008 07:13:11 +0000 http://www.dailyreckoning.com.au/?p=4565#comment-55682 I think the issue here is the myth that the U.S economy is the world's best or most efficient. This myth has been pushed along by the U.S themselves because the Americans like to be seen as the centre of the universe. The fact is that a lot of U.S companies are sick and have been for a long time, the auto industry being a case in point. If the U.S., the biggest market in the world for automobiles cannot have a viable auto sector then it says a lot about U.S industry. I wonder how this can be when the U.S keeps telling us that their workers are the best in the world? I know U.S car makers are weighed down by pension schemes etc., but this is just another example where Americans have been living beyond their means for a long, long time. The end of the world is not nigh....but the focus of the world is moving towards Asia and as many commentators have noted, the U.S has entered a period of long term decline. Nobody stays on top forever and that is a good thing. I think the issue here is the myth that the U.S economy is the world's best or most efficient. This myth has been pushed along by the U.S themselves because the Americans like to be seen as the centre of the universe. The fact is that a lot of U.S companies are sick and have been for a long time, the auto industry being a case in point. If the U.S., the biggest market in the world for automobiles cannot have a viable auto sector then it says a lot about U.S industry. I wonder how this can be when the U.S keeps telling us that their workers are the best in the world? I know U.S car makers are weighed down by pension schemes etc., but this is just another example where Americans have been living beyond their means for a long, long time.

The end of the world is not nigh....but the focus of the world is moving towards Asia and as many commentators have noted, the U.S has entered a period of long term decline. Nobody stays on top forever and that is a good thing.

]]> By: Coffee Addict http://www.dailyreckoning.com.au/inflation-protection/2008/12/05/comment-page-1/#comment-55676 Coffee Addict Fri, 05 Dec 2008 05:20:06 +0000 http://www.dailyreckoning.com.au/?p=4565#comment-55676 Hilary. US firms simply cannot compete in the market with the dollar at its current peak. I am anticipate a massive USD nosedive but I don't have a crystal ball to tell me exactly when. My "back of the envelope" guess is that if we about 60% though the deleveraging process the USD will remain bloated for the next 6 months at least. After that, who knows, but debtor nations are unlikely to just "take it on the nose". Also I understand that Marc Faber is predicting a collapse on global capital expenditure around Q2 09. The bottom line is that the sooner the market can CORRECTLY price human and other resources, the quicker these resources can be fully utilised. Politicians should aim to just get the adjustments done. Prolongation politics can only lead to idle workers idle assets and a decade of gloom. Hilary. US firms simply cannot compete in the market with the dollar at its current peak. I am anticipate a massive USD nosedive but I don't have a crystal ball to tell me exactly when. My "back of the envelope" guess is that if we about 60% though the deleveraging process the USD will remain bloated for the next 6 months at least. After that, who knows, but debtor nations are unlikely to just "take it on the nose". Also I understand that Marc Faber is predicting a collapse on global capital expenditure around Q2 09.

The bottom line is that the sooner the market can CORRECTLY price human and other resources, the quicker these resources can be fully utilised. Politicians should aim to just get the adjustments done. Prolongation politics can only lead to idle workers idle assets and a decade of gloom.

]]> By: Hilary Smith http://www.dailyreckoning.com.au/inflation-protection/2008/12/05/comment-page-1/#comment-55664 Hilary Smith Fri, 05 Dec 2008 03:48:15 +0000 http://www.dailyreckoning.com.au/?p=4565#comment-55664 The economy made me do it...I'm sorry but AT&T, DuPont and the like are big enough and powerful enough to keep workers employed during this recession instead of firing 5,000 here, 20,000 there, and making the economy even weaker. Why don't the huge companies in this country show some real corporate leadership and make a pact with each other to keep workers employed. Consumers would continue spending because they'd actually have money because they'd actually have jobs. After a couple of months, people would begin to trust again and spending habits would be restored. A serious show of good-will from Corporate America would fix our economy and establish America as a civilized, genuinely compassionate 21st Century corporatocracy. There is no rule that says corporations can’t be a source of good. The economy made me do it...I'm sorry but AT&T, DuPont and the like are big enough and powerful enough to keep workers employed during this recession instead of firing 5,000 here, 20,000 there, and making the economy even weaker. Why don't the huge companies in this country show some real corporate leadership and make a pact with each other to keep workers employed. Consumers would continue spending because they'd actually have money because they'd actually have jobs. After a couple of months, people would begin to trust again and spending habits would be restored. A serious show of good-will from Corporate America would fix our economy and establish America as a civilized, genuinely compassionate 21st Century corporatocracy. There is no rule that says corporations can’t be a source of good.

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