Amazing how much Change can happen in two years. Wait and see what the
next two bring.

.


On Thu, Apr 7, 2011 at 4:32 AM, Robert Munn <[email protected]> wrote:
>
> Funny how the Chinese, being a command-and-control economy,
> over-invested in real estate. I've been thinking for a few weeks now
> that the US has, by dint of globalized competition that favors huge
> enterprises dominating vast swaths of the global economy, and by the
> regulatory capture of the government by these entities,  become the
> Soviet Union in 1985, with a twist that the small number of people at
> the helm of our command and control economy are in the private sector.
> Or are they in the government? Or do they pretty much flow back and
> forth between the private sector and the government? Could it be true?
> Let's examine the evidence:
>
> - We're in debt up to our eyeballs
> - Congress continues to pass Fantasyland budgets
> - We're over-extended militarily, and losing, in Afghanistan
> - We're very worried about our relationship with China
> - We have vast swaths of unoccupied residential and commercial real
> estate all around the country
> - Our government is acting a bit too much like Big Brother
> - The revolving chairs of government and industry give a small number
> of people control over both the private sector and the public entities
> meant to restrain the private sector
>
> In many ways, we're in the same position as the Soviets were then.
> What are we going to do, wait until the whole thing implodes like they
> did? We'll make some attempts at reform, sure. But we'll fail because
> the system is broken. And it comes down to the same damn thing that
> did in the Soviets - too much power in the hands of too few people
> with little or no accountability to the public.
>
>
>
>
> On Wed, Apr 6, 2011 at 9:41 PM, Gruss Gott <[email protected]> wrote:
>
>> All that money you (and all of us) made buying and selling homes
>> starting in the 90s was actually borrowed money.
>>
>> You used all that money to buy all kinds of stuff and we built an
>> entire economy around that flood of borrowed money (70% of our
>> economy!).
>>
>> Now the borrowing has stopped, except by the Fed.  And soon enough
>> they'll have to stop.  QE2 ends in June.
>>
>> Interestingly, it's playing out in a bizzarro way in China.
>>
>> Because they have a command economy it's their government that's
>> actually putting all their capital to work building "ghost cities"
>> that nobody can afford to live in.  Creates jobs, builds
>> infrastructure, but nobody can afford it!
>>
>> Fascinating!
>>
>> http://www.dailymail.co.uk/news/article-1339536/Ghost-towns-China-Satellite-images-cities-lying-completely-deserted.html
>>
>> Great video here:
>> http://www.sbs.com.au/dateline/story/watch/id/601007/n/China-s-Ghost-Cities
>>

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