When you make an investment, what you own is an opinion. This is mine.
In the 1950’s the US was the world’s largest creditor. Japan was beginning to industrialize with South Korea soon to follow. Europe was rapidly rebuilding. During the next 50 years Europe, followed by the US, became more and more socialistic. Equal results for unequal efforts defies the laws of nature. Socialism always has and always will continue to fail.
The US went from the world’s largest creditor to the world’s largest debtor. In 1977, the US federal budget was $300 billion. In 2007, it was $3 trillion - 10 times larger. Leverage is as toxic on the way down as it was intoxicating on the way up. Today we owe $4 trillion to the rest of the world. Much of the world doesn’t want any more treasury bills so they have started sovereign wealth funds to buy real assets. This is the largest rotation of wealth in world history. The Jeanie is coming out of the bottle and it won’t look like Barbra Eden. Greenspan bailed out long term capital by printing, Y2K by printing, NASDQ bubble by printing, and housing by printing. Now the Greenspan put is being exercised. It’s being put to the taxpayer.
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