April 27, 2006
Inflate. Devalue. Tax.
As GM Goes, So Goes the Nation, by Bill Gross
General Motors is a canary in this country’s economic coal mine; a forerunner for what’s to come for the broader economy … Because diminished labor cost competitiveness and excessive future unreserved liabilities are descriptive of both GM and the U.S. economy, GM’s efforts to survive and ultimately prosper should be our own as well.
…
Higher inflation, higher personal and corporate taxes, and a lower dollar point U.S. and global investors away from U.S. assets and toward more competitive economies less burdened by health and pension liabilities – those personified by higher savings rates and investment as a percentage of GDP. Need I say more than to sell U.S. assets and buy Asian ones denominated in their local currencies?
Correct. Billionaire Bill gets it.
April 27th, 2006 at 5:55 pm
Hi
>those personified by higher savings rates and investment as a percentage of GDP.
April 27th, 2006 at 11:55 pm
Hence all the “bidness” trips to the Middle Kingdom, eh Chairman?
April 28th, 2006 at 2:42 am
Competitive wages aren’t worth much if your assets can be confiscated from you in other ways. Like say by the local military general.
April 28th, 2006 at 5:51 am
.. or by your business partner, or by gangsters, or by the security company looking after your assets, or by the state. It can even happen to you if you’re a shrewd billionaire and leader of another (very small) Chinese country, starting say, an industrial park.
April 28th, 2006 at 7:44 am
Steve G: I live here now, full time.
fhl & Eyal: How come you guys know so much about doing “bidness” here? ;-)
July 11th, 2006 at 7:59 pm
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