Archive for June, 2010
Industrial Revolution
I continue to scream at the top of my lungs that our situation is quite poor in the U.S. Our standard of living was grossly inflated over the past 15 years by an explosion of credit, on the heels of 3 of the most outstanding developments – the Internet, the Personal Computer and the Cell Phone.
Our economy is going to remain mired in a no growth, no hiring environment, as long as we remain constrained by our own lack of innovation. The U.S. citizens will continue to see their real disposable incomes erode without real growth.
Lowering interest rates, or lowering taxes cannot create real growth. Real growth cannot be mandated or decreed. Real growth happens when we create new products that make us more productive.
Our economy has thrived for the past 140 years. We went from an agricultural economy to an industrialized economy. The amount of work a man could perform in a day increased 1000 fold as we developed better and better tools, and learned to harness various forms of energy. We built machines to move goods and services across the world. We changed the way men and women lived.
The dramatic pace of innovation during the INDUSTRIAL REVOLUTION was
Extra-ordinary. Without major breakthroughs in physics, science or ethics*, then the global standard of living should remain the same. This is not to say that all of the people’s living standards will stay the same. Quite the opposite, is expected. If we hold the global standard of living constant, and have more and more people in 3rd world countries coming on line, and adding to the world’s production capacity, then we should expect there to be an erosion of the living standard of those that are already living above the average. Here in the United States, our standard of living is the highest in the world. If the world’s standard of living remains steady, then we will have the most to lose.
Our only path is forward. We need to continue to push the abilities of man further and further if we wish to maintain our standard of living, let alone improve it. Hopefully the advancement in communications and computing power will be catalysts for the next developments, and we will get some exciting stuff soon.
Joy to the world
Peter
Market Update June 14th 2010
The Fed remains on hold, as the bad loans continue to weigh on our banks. In this environment, U.S. Equities receive all of the benefit- with rates this low, they re not too ugly.
The problem is that we are all being forced to lower our standards, as we seek investment opportunities. The economy s bad, and not about to recover- but selling stocks wont help.
joy to the world
peter
Categories
Archive
- May 2013
- April 2013
- March 2013
- February 2013
- January 2013
- December 2012
- November 2012
- October 2012
- September 2012
- August 2012
- July 2012
- June 2012
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- February 2010
- January 2010
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009