Rantings and tirades of a frustrated economist.
It reminds me of Japan's investments during the Reagan administration.
You might be right, but I'd have to bet against it. I think the fundamentals of the US economy, long term, are weak and the long term fundamentals of the likes of China and India are strong. Those countries are hungry for economic growth and expansion. The US is filled with people that want to go to Applebee's, collect their check, and then take out a home equity loan to buy a boat, watch Teen Idol, and then retire at 62. The only way it would be different is if (like Japan) corporate corruption stagnated the economy and they had a banking crisis (which may yet happen in China).But don't bet on it.
Also, forgot to mention, US asset prices are low relative to the prices Japan was paying back in the 80's.
don't rule out America's greatest asset - our freedom to innovate our way out of these (ala 1980's) bumps. We will be looking back in 20 years and wonder why we were so concerned about the new (japan) giant. This nation has and will continue to dominate (unless of course hillary get's elected, then all bets are off:-)))))))
Anon, that's the way of thinking that will cause the gradual downturn of the USA relative to other economic superpowers. You can't believe in some "superior force" that leads the US out of every crisis.Concerning the investments, there will come a time when the US and China are tightly locked together, i.e. they both invest much in the other country. And this will have good consequences, e.g. lessen the political tension between them.
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