Lost Generation, wow sucks to be young today.
- Thread starter noob_trad3r
- Start date
Eh, over the last 10 years, 9/11 has been a national obsession, but we still couldn't rebuild the office towers in that time. Meanwhile, Singapore and Shanghai routinely put up comparable towers in 2 to 3 years time.
We spent billions of dollars and thousands of American lives to invade Iraq, but we can't rebuild two super-symbolic office towers.
We're screwed.
Anyway, we aren't going to join the 3rd world... the 3rd world is moving up, and our standard of living is moving down... we will meet somewhere in the middle. The American public still has no idea how the Indian "middle class" lives... and they do not realize, yet, that our "middle class" lifestyle is going to decline and equalize to the Indian "middle class" lifestyle. There will be no 1st world and no 3rd world... If you make your living based on your labor, and the world is just one big labor pool, then it's just one world, with billions of laborers jockeying for whatever jobs are needed from the ownership classes.
The Indian "middle class":
Baby Boomers' "middle class":
The Baby Boomers consumed all the goodwill that the WW2 generation earned through sacrifice (and a lot of luck). Then, they borrowed to keep the party going. The bill is coming due...
The international currency regime supposed to work like this
You have current account deficit that means there is more money going out then coming in one of which is export/import
So the international markets realize this and value of your currency goes down. When the currency depreciates, your exports become cheaper and you got more money coming in so your current account and/or trade account increases and you reach an equilibrium where again if you have too much money coming in your currency appreciates so your exports become expensive and so on so forth
Well with the USA, it does not work like this. We got the biggest trade deficit and the budget deficit yet USD does not lose value. Why? Because US and USD seems like the ultimate safe heaven at all times
So currency never depreciates as a result your exports remain expensive so you can not sell much to overseas. but money keeps pouring in because you are the safe heaven
As a result, trade deficit keeps breaking records your budget deficit breaking records but currency still holds steady.
USD should depreciate inorder for this system to work, otherwise we will have a big time correction somewhere somehow. Something gotta give.
You have current account deficit that means there is more money going out then coming in one of which is export/import
So the international markets realize this and value of your currency goes down. When the currency depreciates, your exports become cheaper and you got more money coming in so your current account and/or trade account increases and you reach an equilibrium where again if you have too much money coming in your currency appreciates so your exports become expensive and so on so forth
Well with the USA, it does not work like this. We got the biggest trade deficit and the budget deficit yet USD does not lose value. Why? Because US and USD seems like the ultimate safe heaven at all times
So currency never depreciates as a result your exports remain expensive so you can not sell much to overseas. but money keeps pouring in because you are the safe heaven
As a result, trade deficit keeps breaking records your budget deficit breaking records but currency still holds steady.
USD should depreciate inorder for this system to work, otherwise we will have a big time correction somewhere somehow. Something gotta give.
True. Also remember the inertia of existing contracts denominated in dollars supports the value.
"USD should depreciate inorder for this system to work, otherwise we will have a big time correction somewhere somehow. Something gotta give."
history has shown that depreciating ones currency leads to economic disaster. it is a drug for the weak and undisciplined.
the solution is to cut the # of government workers by 25%. cut their salaries and pensions by 25%+.
Quote from Mayhem:
Eh, over the last 10 years, 9/11 has been a national obsession, but we still couldn't rebuild the office towers in that time. Meanwhile, Singapore and Shanghai routinely put up comparable towers in 2 to 3 years time.
We spent billions of dollars and thousands of American lives to invade Iraq, but we can't rebuild two super-symbolic office towers.
We're screwed.
Anyway, we aren't going to join the 3rd world... the 3rd world is moving up, and our standard of living is moving down... we will meet somewhere in the middle. The American public still has no idea how the Indian "middle class" lives... and they do not realize, yet, that our "middle class" lifestyle is going to decline and equalize to the Indian "middle class" lifestyle. There will be no 1st world and no 3rd world... If you make your living based on your labor, and the world is just one big labor pool, then it's just one world, with billions of laborers jockeying for whatever jobs are needed from the ownership classes.
The Indian "middle class":
Baby Boomers' "middle class":
The Baby Boomers consumed all the goodwill that the WW2 generation earned through sacrifice (and a lot of luck). Then, they borrowed to keep the party going. The bill is coming due...
generation x and Y thought they getting education by going to college. little did they realize their education was nothing but but a feely good experience to postpone the transition to adulthood.
now they graduated and have no marketable skills since many of them are barely literate. the result is that the US is sliding into abyss
Quote from Mayhem:
The Indian "middle class":
Seeing this, I can't help but think of Soylent Green and the book make room, make room. I don't think this is our destiny in that the Indian culture is very different. Even the rich areas of India look like a dump. Japan has been stagnant for years and things are just as modern and clean as ever.
Look, there aren't enough jobs to go around. The young and old can make the same complaint, with or without a degree. You want to solve the problem: encourage entrepreneurship and the jobs will come. It's hard but it's the only way to go. And the best way to encourage entrepreneurship: reduce the capital gains tax to zero for investment in new businesses, not for investing in stocks, debt, etc. You'll see a gold rush of money going toward the businesses that really need capital.
You need to understand co-ed education to understand that. The Spenglish definition of "tenure" is important too. I prefer not to talk about such things as why tuition outpaces inflation. Rich people tend to have hotter daughters of course.
If you're in college, look around the room and do a little accounting. How many people? How much was your tuition for that particular class? Multiply. Arrive at that large number. Now. How much is that professor and "TA" paid? Do a little a cost estimation on the building. How old is it? When was it built? Throw in supplies for labs and science stuff. What number do you get as profit?