tag:blogger.com,1999:blog-8358039.post983748719906417654..comments2024-03-25T15:17:04.488-07:00Comments on Captain Capitalism: The "Less Sucky Economy" BubbleCaptain Capitalismhttp://www.blogger.com/profile/05620212946121617985noreply@blogger.comBlogger13125tag:blogger.com,1999:blog-8358039.post-81553471932646571812012-11-26T21:48:23.193-08:002012-11-26T21:48:23.193-08:00I heard your interview on Schiff today, good stuff...I heard your interview on Schiff today, good stuff. Your blog is funny as hell.<br /><br />I endured the "crazy" comments over the Thanksgiving weekend. My liberal relatives told me I was full of shit and "weird" when I pulled out a 1 oz silver coin to show them what I had been buying w/ my extra cash. According to them, there is "no way the US can go bankrupt". This is coming from 4 relatives dependent on pensions and social security (surprise, surprise). I guess we'll see who is crazy when all is said and done.Davenoreply@blogger.comtag:blogger.com,1999:blog-8358039.post-59176166714212641002012-11-26T11:41:40.148-08:002012-11-26T11:41:40.148-08:00Yeah, well, my dad used to say, "I thought I ...Yeah, well, my dad used to say, "I thought I was wrong once but, I was mistaken."Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8358039.post-10698419786171964862012-11-26T08:40:40.544-08:002012-11-26T08:40:40.544-08:00I've done a few blog posts on China but I can ...I've done a few blog posts on China but I can summarize exactly why China will crash in one short sentence. They have done everything that has failed in the past only larger. <br /><br />1. Their economic model is a direct copy of whay Japan did during the decades that they grew. I.E a heavily export based economy, which leaves them heavily tied to the economic health of the world.<br /><br />2. For political reasons the CCP has made 'maximum employment' their main focus, not profitability. The Chinese have many large industries that would have a negative ROE if it were not for heavy government subsidization. Once that subsidization is gone those industries cannot sustain themselves.<br /><br />3. They did the exact same thing the US did, pump a ton of money into their banks, in 2008 but larger in terms of percentage of GDP.<br /><br />4. They never really became capitalistic. Yes on the surface it appeared that private enterprise was taking over, but if you dug into it you would find that the majority owner of most major Chinese corporations are, you guessed it, the Chinese government. Rather than capitalism they adopted gangsterism as their economic model, where their elected leaders tried to siphon as much money as possible, through any means possible.<br /><br />5. Regionalism is reasserting itself, like it did at during the fall of the Qing dynasty and the fall of the nationalist government. The purging of Bo Xilai is the first example of this regionalism playing out. Rich chinese, seeing the way the winds are blowing, are gradually getting out of dodge because they know a pogrom is coming for those who are on the wrong side.<br /><br />6. Massive investment in infrastructure to the point that much of it will never see a positive return on investment. What so many miss about infrastructure is that it doesn't yield GDP growth, but facilitates it. If you build a high speed rail line that will never be used, or approach anything close to capacity, then you will see a negative return on investment. There are numerous examples of this in Japan.<br /><br />There are other reasons such as the wealth of the US versus China in terms of natural resources and its population and some other things like natural infrastructure thanks to the Mississippi. And then the demographic suicide the PRC inflicted on itself, but above are the economically related reasons.Cogitans Iuvenishttps://www.blogger.com/profile/05960295264769181088noreply@blogger.comtag:blogger.com,1999:blog-8358039.post-89057342476160219222012-11-26T07:49:08.942-08:002012-11-26T07:49:08.942-08:00Canada and Australia may rank higher on the LSEP c...Canada and Australia may rank higher on the LSEP charts, but they do not have the capacity to absorb the investment. They are both tiny countries (population-wise). There has already been a move to invest in Canadian dollars overseas, but that won't be an option for most.heresolonghttps://www.blogger.com/profile/00461382067580153600noreply@blogger.comtag:blogger.com,1999:blog-8358039.post-63833934084365952932012-11-25T17:15:27.118-08:002012-11-25T17:15:27.118-08:00Good assessment. Quite possible and perhaps even ...Good assessment. Quite possible and perhaps even probable. <br /><br />Kind of like a special olympics race....it's nice to be in first place but that in no way changes the fact that all the contestants<br />are "special" i.e. not healthy.Dannoreply@blogger.comtag:blogger.com,1999:blog-8358039.post-41182804366106439052012-11-25T16:08:03.053-08:002012-11-25T16:08:03.053-08:00You're harshing my doom porn mellow, man!You're harshing my doom porn mellow, man!Eoonomy 2013: Now with 30% less suck!noreply@blogger.comtag:blogger.com,1999:blog-8358039.post-78540578809371810532012-11-25T13:02:57.672-08:002012-11-25T13:02:57.672-08:00I never thought of it this way, but it's frust...I never thought of it this way, but it's frustrating when these important predictions have to be delayed because of our own selves! I'm still hoping that college bubble bursts in the next four years, so people will wake up and stop majoring in worthless garbage that does nothing for society except contribute to the European influenced nanny state mentality that's been sweeping across America and rotting the country from the inside. Sigh.<br /><br />I can't wait for tomorrow morning though. You're gonna do great on Peter's show for sure.Anonymoushttps://www.blogger.com/profile/05166618601866526009noreply@blogger.comtag:blogger.com,1999:blog-8358039.post-19325207613538905652012-11-25T12:28:57.378-08:002012-11-25T12:28:57.378-08:00Newbie question, but what is the book for Economic...Newbie question, but what is the book for Economics 101, i have started recently to read your blog and now i am intrigued to learn more about the topic.<br /><br />Is there a post where you explain what is the "path" to learn this?, i looked trough the archives, but didn't find one.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8358039.post-13614630671709624322012-11-25T10:03:31.195-08:002012-11-25T10:03:31.195-08:00America: The Leper With The Most FingersAmerica: The Leper With The Most FingersMalcolmnoreply@blogger.comtag:blogger.com,1999:blog-8358039.post-63691663785333240842012-11-25T09:38:26.844-08:002012-11-25T09:38:26.844-08:00My own tea leaf reading had me looking towards not...My own tea leaf reading had me looking towards not a decline, but an implosion due to the M3 bomb going off, perhaps as early as New years. I'm reassured that I might have another 6 months to 2 years to prepare for the disaster.Thomas Smithhttp://tom-the-impaler.livejournal.com/noreply@blogger.comtag:blogger.com,1999:blog-8358039.post-79457314834028191592012-11-25T09:09:15.570-08:002012-11-25T09:09:15.570-08:00I think "none of the above" is the most ...I think "none of the above" is the most likely answer to this riddle. Globalization is going to recede, especially as peak oil makes travel and shipping more expensive. America being a relative winner isn't going to matter as much as it used to.<br /><br />China's demographic death spiral, for what it's worth, was telegraphed. Their infamous one child policy is well known. It's not comparable to Greeks or Swedes or Japanese who suddenly became infertile Eloi for seemingly no reason.<br /><br />The quants will be fine this time around. The average guy is going to take it on the chin.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8358039.post-9705611216639327402012-11-25T08:57:48.937-08:002012-11-25T08:57:48.937-08:00In Texas we're already playing that angle.
We...In Texas we're already playing that angle.<br /><br />We've been courting the Japanese for decades, now we're courting the South Koreans, and we have an F1 facility.<br /><br />It's worked out well so far.Andrewhttps://www.blogger.com/profile/17971986598583086801noreply@blogger.comtag:blogger.com,1999:blog-8358039.post-902319188270855242012-11-25T08:40:01.719-08:002012-11-25T08:40:01.719-08:00Although this article shows that there are some ot...Although this article shows that there are some other nations (Canada & Australia) that may collectively lead the LSEB. Of course if China goes down the drain, there goes a lot of the demand that their resource economies depend on. http://articles.marketwatch.com/2012-11-19/commentary/35251403_1_reserve-currency-reserve-assets-central-banksReidonoreply@blogger.com