A Snapshot of the Future

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I follow the markets, since I manage my wife's 401K. I just took a look at the stock market indexes around the world and saw a picture of the future.

All European stocks down save Norway. All Asian Pacific stocks up, handsomely. Canadian stocks up. S. American stocks mixed. US stocks not moving.

That is the future: except for US stocks. The future will see US stocks falling precipitously against Asian-Pacific indexes. The reason is very simple. Asian Pacific nations are poised for continued and sustained growth as their poverty stricken citizens advance to middle class status in the billions and constitute the future's new consumer class, creating unprecedented demand for Asian Pacific products produced by Asian Pacific labor.

Asian Pacific nations are now where the US was in 1935. Recovering from slow economic growth and poised to simultaneously put labor to work producing goods and services for workers whose wages and discretionary income are seeing unprecedented increases.

What this means is the smart money in stocks will be moving to Asian Pacific corporations, and that includes American stock investment dollars, since the returns there will overpower any hope of returns here, as American Corporations move overseas to capitalize on the world's new growth centers. This is why the wealthy in America including the Bush/Cheney families are paving the way for American corporations to exit America and take up international corporate status overseas. That is where the money is and smart money invests in the future. And the future is in the Asian Pacific rim.

America will become a service class nation much as India was in the last century with an aristocratic class of wealthy served by a nation of paid servant workers. HR 25, (PDF) a Republican sponsored bill is designed to move us in just that direction by eliminating taxes on wealth and income, and replacing them with consumption sales taxes for retail products. The wealthy will buy goods overseas bypassing the sales taxes, while their paid servants will consume staples here at home providing the great bulk of revenue the Federal Government will need to protect Aristocratic interests and lifestyles here in the US.

It is just a snapshot of the stock markets. But, with just a modicum of political and economic awareness, today's indexes are also a window onto the future, which your government is working hard to create and enhance for the benefit of the wealthy, which they are, or intend to be after leaving Congress for lobbyist position.

2 Comments

While I agree that the asian pacific markets are expanding, I disagree that the united states is going to drop down into a service class. There are several several issues in the asian markets especially in china. Their banks are over extended and loan defaults are on the rise.

What the united states needs to do is reform their tax structure and remove corporate income taxes. it is we the consumer that are really paying those taxes any way. If america wants to make a move for industrial competiveness then it needs to make itself more attractive for corporations to be in the united states.

-Tim
Traditionalist

Tim, your argument would make sense if America's corporations were not making handsome profits, but, they are. Therefore, your argument that profitable companies will become more competitive in order to become profitable makes no sense.

What would happen under your argument is consumers would support their own lower wages while corporations increased their profits even further. You are no doubt in favor of HR 25, the Republican sales tax bill that would eliminate corporate taxes, estate taxes, capital gains taxes, in fact, all taxes on wealth except a sales tax on what the wealthy spend here in the US.

Well, check this out. If wealthy corporations are going overseas for cheaper labor, what is to stop the wealthy from taking their consumer dollars overseas to circumvent sales taxes here? Sorry, it just doesn't wash.

Besides, corporations are the biggest consumers of American publicly owned resources as well as labor resources. They are obligated to pay something back to the public in return.

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This page contains a single entry by David R. Remer published on August 11, 2005 10:51 AM.

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