Where will the growth come from?

C

cgtrader

So a friend asked me the other day:

Since the capitalist system is build on never-ending growth, where do you see growth coming from in the next 10 years?

Points he asked me to consider:

-US consumer is all but tapped out, while the middle-class is being exported

-China is forming a massive bubble

-Credit crunch may make lending much more difficult

-Emerging markets have unstable financial and other systems that have not been tested under sustained growth

Where will the growth come from now?(That the US consumer is all but dead)
 
on the liquidity side, the asians and the arabs have too much cash to spend. Look at the the Shanghai bubble created by the Chinese domestic savings.. all that liquidity has no where to go but to buy something..... the government opens a little window for the liquidity to the Hongkong, all of a sudden Hangseng is doubled..... this is the first step, once the chinese has a taste of HongKong, the next will be Tokyo, Sydney, London, New York.

on the productivity side, we are only at internet 1.0....... in the coming decades, internet 2.0, 3.0.. will increase productivity exponentially, fueled by the young and hungry workforce from China, India, even Africa.

The growth will come from more free flow of goods, capital, work force and most importantly, INFORMATION.
 
'the asians and the arabs have too much cash to spend'

they should try to upgrade the standards and quality of environment they live in........this in turn will also fuel the demand for western goods.

regarding us, any state producing budget surplus should send funds towards the piling federal debt. for a while there has to be spending stop for new but not needed projects.

US government needs $1T a year in savings or revenues to go debt free in two decades or so.
 
I joke about this but seriously, in the Orlando, FL area, growth seems to be all the new Amscot (payday advance loans) businesses, Dollar Stores and Pawn shops.

Not a good sign IMO.

Joe.
 
Quote from cgtrader:

Where will the growth come from now?(That the US consumer is all but dead)
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Internet is just in its infancy. It's going to be much bigger in 10 years.
 
Excellent Commentary
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Structural tax changes

Legal changes

Internet

The new auto industry

The new energy industry

The new world wide stock market
centered on the new internet

Socialized Capitalism
 
Quote from cgtrader:

So a friend asked me the other day:

Since the capitalist system is build on never-ending growth, where do you see growth coming from in the next 10 years?

Points he asked me to consider:

-US consumer is all but tapped out, while the middle-class is being exported

-China is forming a massive bubble

-Credit crunch may make lending much more difficult

-Emerging markets have unstable financial and other systems that have not been tested under sustained growth

Where will the growth come from now?(That the US consumer is all but dead)
More...


America is highly resourceful country, controls world's financial markets and has ingenious products and a wide industrial base. Don't underestimate ourselves we have just didn't become a Super power overnight a lot of things went into it. American economy has its ups and downs and yet it still manages to feed us well.
 
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