Quote Originally Posted by EJ View Post
Yes, I'm being intentionally provocative here, and glad I've smoked out comments from members of the community we have not heard from before.

Consider our unfortunate situation.

On the minus side:

  • The FIRE Economy is collapsing
  • Unemployment is rising rapidly
  • We have minimal savings
  • Our credit is in question

On the plus side:

  • We have a surfeit of human capital, millions of well educated people who are willing to work hard
  • We have strong institutions that took generations to develop, albeit under marginal management lately
  • We have a strong rule of law, although poorly enforced as of late, especially for property rights, which is why so much is invented here

What to do to build for the future? How to finance it?
Plus side:

1) China and India also have plenty of human capital. Thanks to GATT/WTO, we now have slave wages for both blue(if they can even find a job) and white collar workers. Working hard is irrelevant: no one works harder than slaves in a Liberian diamond mine.

2) I really don't understand point #2. Maybe you're hoping to get a job from Obama or something. Seriously ridiculous, but wtf do I know...

3) We have a VERY strong rule of law for those who not of the $1M+ campaign contribution club: for the plebes, it's fear and intimidation as usual. For the oligarchs, well, they write the laws, and so how can they break them??? :rolleyes:

How to finance it? Infrastructure bonds? You realize that even WITH retrenching entitlements and empire, we'll need very high interest rates to pull money back in from our QE? That'll cause a SECOND recession if this current collapse doesn't swallow us whole.

So long as US workers make "too much money" for US companies to invest domestically, there's 0 incentive to upgrade infrastructure: there's already massive overcapacity in every industry globally. The only possible catalyst to saturate that capacity would be a major war.

Finally, the social engineering/trade tax using carbon credits is asinine: collapsing industry alone will sort out our CO2!