We Sneezed and A Lot of Other People Got Sick

I always love the people (usually not from the US) who say things like "Well you guys deserve this economic downturn, the way you spend and borrow and all" or "see you can't always have it all" or even "this is payback for your evil ways". To which I always reply, "pound salt assclown" or "socialism is a nice way of life isnt it?" Well folks, I've been around the block and the world and its safe to say when the US is hurting, most of the rest of the world is hurting 10x as badly. That's not some American Capitalist Pig statement. That's a fact.

Greece is in trouble. Some think Portugal and Spain are next. Japan is in a 20+ year slump and China's real estate market is an implosion waiting to happen. I could go on and on. What do these various countries do to make money? What is their economic system? It reminds me of these Hollywood types that make some bold statement like "if blah blah blah happens, I'm moving to Country X". Much to my chagrin, they never leave. I guess those other countries can't pay them millions of dollars for a few weeks of work. Funny that.

So for those "haters" out there, you better pray that the US economy gets better and soon. If you think long and hard about it, you really have nothing else to hope for. Sorry to be so blunt but just think about that before you call me George Washington or Ben Franklin. Well Ben Franklin aint so bad. He's on the hundy.

Comments

Its not actually my practice to post comments, but i thought i would say that this was really good.
Sincerly

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[fletch]

Herbert My favorite illustration of what happens when fiat money spending gets outta control is France in the early 18th century (~1719ish). Read "Millionaire" by Janet Gleeson (I think), the story of John Law, the inventor of modern finance. It's astounding how closely our last 10yrs tracks that era. Nothing new since, leverage & psychology, manias & crashes. We could be in for the big one unless the beltway morons smarten up

[Richie]

Trader,
I think there is a little misunderstanding. Both Eric and I were working on the Street during the time "Curious" George Soros played fun and games with the British Pound. As a matter of fact, we almost always use the reference when we talk about the #1 limosine liberal himself. Im sure we didnt hear the caller or maybe it wasnt us on the show. I can PROMISE you I wouldve blasted anyone who was extolling the virtues of George Soros unless they were talking about his prowess for stealing. As far as people investing in our country, I often think about the alternatives that are available to them. As in, I dont think anyone got a gun put to their head to invest here. That being said, I'm sure people everywhere are pissed off anytime they lose money. Declaring war might be a stretch but perhaps declaring "economic" war on us would be useful. Like not investing a penny in the US ever again. Someone I think needs to explain that to our President and he should think about trying to fix that perception rather than gay marriage or dont ask dont tell in the military or even healthcare. Cause if our financial house stays in disarray, investors will stay away. I think I will trademark that last sentence. To recap, Soros? Assclown who cornered the currency markets for a little bit and made about $1bn on the trade and now tries to tell everyone about the virtues of communism.

[trader]

A caller to Pete's show (or what it another guest?) was extolling the virtues of George Soros. There were a lot of other smart people who could have done a better job than Bernanke, etc., etc.

Speaking of Soros... I'm disappointed that when another caller a few months ago mentioned the man who broke the Bank of England by speculating in currency. You guys did not know the reference. Why is that?

Which brings me back to yesterday's post. Can you tell me, since so many other country's governments and sovereign wealth funds have invested in America.. when the house of cards eventually falls, how do we NOT get war declared on us by the rest of the world?

[Herbert]

Greece, Spain, Italy, Portugal (and Iceland and Lettland and Hungary) are in real trouble.

Germany, France, Denmark, Austria, Luxembourg, Monaco, Norway, Finnland, Czeceslowakia, Poland, Russia, Ecuador, Chile, Mexico, Costa Rica, Brazil, Australia, Cambodia, Laos, Taiwan, South Africa, just to name a few aren't, and citizens there are rather well off. We haven't seen the tail-end of the American recession yet (what we're seeing now is how good it still is with our misguided government pulling imaginary money out of the next generations taxes and spending wastefully like no American government before).

The moral of the story - if you spend nonexistent fiat money like there is no tomorrow, there are consequences. We haven't seen the end of the consequences for our doing yet. We're fucked, and fingerpointing won't help.

Specifically not if we're in the wrong club, ie with the other folks you're ponting fingers at. I'd love to be in the club of the folks who saved and don't suffer through a depression.

My recipe? Reign in government spending on administration and the war, nationalize the too-big-too-fail-banks, lower taxes and remove legal incentives to starting new small businesses, start building roads, plants and parks to get people busy and off the street and create some value along the way.