Where has capital gone?

[MtnWulf]

Another article about the flight of capital from the US economy.

What they democrats have done is criminal in it's intent, and disastrous in it's results. They are systematically destroying the economy.

http://townhall.com/columnists/DanKennedy/2010/07/17/the_flight_of_the_money_where_has_it_gone

[Shootability]

I fear that is dead on - we have seen the destruction of capital. Folks are burning savings, companies are buring equity. We are giving things to folks that do not build America.

[juanni]

It is extremely naive to think this is the result of the demos.

It is simply capital is moving to where it can return the highest yields.

That isn't going to be the US where.....

Free Market Capitalism has been replaced with Crony Capitalism, where the connected via bribing of the TWO parties have severely tilted the table in their favor.

Our federal, state and local govts have heaped upon themselves massive unsustainable debt and commitments,,, that if not defaulted on will have to be payed with HIGHER taxes.

The over leveraged Consumer Model has run its course, and is defaulting/deflating. Not possible to milk that model for more growth.

A employee base from a completely dysfunctional education system, an obese, unhealthy population which requires/demands very expensive health care, HIGH wages to pay for all that govt spending and is ready to sue over any perceived slight.
Open your eyes and look at the fat, whiny ,unhealthy, illiterate, ignorant, lazy, tatted, face pierced, sue happy and entitled trash that are YOUR potential employees and or consumers of your products/services.
WHY would you want to deal with that when the exact opposite are begging for work elsewhere?

And guess what? Capital flight will continue until we get serious about making the radical changes required to turn it around.



............juanni

[Hootsmon]

Originally posted by juanni
It is extremely naive to think this is the result of the demos.

It is simply capital is moving to where it can return the highest yields.

That isn't going to be the US where.....

Free Market Capitalism has been replaced with Crony Capitalism, where the connected via bribing of the TWO parties have severely tilted the table in their favor.

Our federal, state and local govts have heaped upon themselves massive unsustainable debt and commitments,,, that if not defaulted on will have to be payed with HIGHER taxes.

The over leveraged Consumer Model has run its course, and is defaulting/deflating. Not possible to milk that model for more growth.

A employee base from a completely dysfunctional education system, an obese, unhealthy population which requires/demands very expensive health care, HIGH wages to pay for all that govt spending and is ready to sue over any perceived slight.
Open your eyes and look at the fat, whiny ,unhealthy, illiterate, ignorant, lazy, tatted, face pierced, sue happy and entitled trash that are YOUR potential employees and or consumers of your products/services.
WHY would you want to deal with that when the exact opposite are begging for work elsewhere?

And guess what? Capital flight will continue until we get serious about making the radical changes required to turn it around.



............juanni



Yep. What he said....

[renaissance_warrior]

I can see November from my house. :wink:

[juanni]

Originally posted by renaissance_warrior
I can see November from my house. :wink:

Oh, besides a costume change what do you see RADICALLY changing then, or the following November, or the one after that, or the one after that, or the one after that.......??


.............juanni

[gates]

J - best we can hope for is gridlock

[gates]

The article is pretty close to spot on - IMO the crux of the issue is this - Repubs are greedy but know how to make the wheels turn, the current batch of Dems are all theory and have no practical, hands on experience at running business' or what business' demand before they will invest and expand. However, in the current environment, Im not convinced that certainty and stable policy and a business friendly tax environment could turn this puppy around - in a deflationary credit collapse you go down regardless of who is in charge.

[2barearms]

Juan is right about their not being a dimes difference between
the parties. It's their Ideology and their machinations that scare
us.

Biden must drink a lot of beer, he was on the boob tube today telling
the pundits that they aren't gonna get their asses handed to them
in Nov. He says they have applied the marinade to the country and it
will just take time for it to taste right, he's referring to eating the Rich
I suppose.

http://www.breitbart.com/article.php?id=CNG.0cc4a694b9a5e1dfeb575b3343e2bc7 4.c51&show_article=1

[Gary Harwell]

On McLaughlin Report this past Friday, it was quite sobering and little terrifying to hear Pat Buchannan and Mort Zuckerman say in tandem there is no way out of this,... austerity is at the doorstep. This situation cannot be solved by taxation , budget cuts, or a new budget at this point. Here you had one of the wealthiest men in America, and the other who has served many administrations saying collapse could come at any point. And the democrap counterpoint, Eleanor Clift, in all seriousness said we cannot end up like Greece because we can continue to print money when they couldn't. All the other participants nearly fell out of their chairs laughing. If it just were funny.

[TheJokker]

capital is being revalued. the chinese yuan is undervalued with respect to western currencies hence lower wages and goods in china. western currencies are "devaluing" in order to regain competiveness with the yuan. goods, services, wages are also dropping until a new equilibrium is reached. this is a dangerous and chaotic period. the change in value must be managed in a slow and deliberate manner in order to avoid collapse.

[juanni]

Originally posted by TheJokker
capital is being revalued. the chinese yuan is undervalued with respect to western currencies hence lower wages and goods in china. western currencies are "devaluing" in order to regain competiveness with the yuan. goods, services, wages are also dropping until a new equilibrium is reached. this is a dangerous and chaotic period. the change in value must be managed in a slow and deliberate manner in order to avoid collapse.

More nonsense from the King of Nonsense.
A little dollar devaluation here, a little yuan appreciating there and all will be OK.

US workers and US products will never be competitive with China UNLESS everything about the US is destroyed and restructured or eliminated like our warfare, welfare, education, justice, environmental laws/structures/systems and our STANDARD OF LIVING plummets to the level of the Chinese.

And the valuing a US citizens life is lowered to the level that the Chinese value their citizens lives.


Jokker, how much do the chinese spend on welfare a year?
Warefare? Foreign bases? Meddling in other countries?
How much is squandered through public employee unions?
How much time and money is spent on a criminal investigation, trial and penalty?
How much is spent annually on healthcare/person?
How much is spent investigating, prosecuting, imprisoning and COMPENSATING when a citizen is intentionally squished under a tank tread?


Attempting to compete with a country that considers its overabundant supply of citizens strictly as an asset to be used in the most efficient method possible for the sole purpose of economic gain is a losing proposition.


...............juanni

[brunop]

Juanni -

I agree with a lot you say. You are wrong if you think it takes a Chinese approach to compete with the Chinese. This country has proven it for decades.

Safety, creativity, quality, etc. are things that people will pay for. All people? No. The lines of people signing up for Chinese stuff at Wal-Mart proves your point. But Germans get it right, and they are a creditor nation...

We need to get rid of welfare, corporate welfare, crony capitalism/facsism, etc. But something like 80% of the Chinese population is still on non-mechanized farms. And they need it to stay that way for now. We don't need to think of or treat our citizens like they do theirs.

Peace.

[ftierson]

"Where has capital gone?," eh?

You might want to check for fake bottoms in suitcases at the Italian/Swiss border to see if another US$134 billion is there...

OK, so I admit it, this is one of my pet peeves. Someone(s) steal $134,000,000,000 (more that the annual budgets of most nations on earth) and send it to their Swiss bank account and no one cares...

Forrest

[juanni]

Brunop, I am not advocating going chinese.

I am simply pointing out that when you have a massive and endless labor pool that is completely expendable, with zero regard to quality of life issues like clean air and water and govt policies that entirely support that at every level......

There is simply no way we can compete.

And any tech advantage we have is quickly adopted or stolen by the chinese IF the cheap, expendable worker model can't compete.

I really am not knowledgeable enough about the German economy to comment how well they compete against the Chinese, but I suspect there are many barriers to exclude chinese products.

My german friends have told me stories of autos with very minor body damage being forced into repair and unkept private homes being spruced up by the govt, with the bill being sent to the homeowner, so I suspect there is much testing and safety hurdles in that type of culture which chinese products don't meet.
They were stunned to come to the US and see cars on the road with cracked windshields or a missing fender!

And I have known plenty of german medical graduates that flee Germany to the US to become a MD instead of remaining in Germany only to drive a cab.

I suspect as the EU meltdown continues we will see that Germany isn't in great shape either.


.............juanni