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stephanie
03-31-2007, 10:21 PM
This is a long article, and some things said in it might sound harsh..But I find a lot in it true..and sad..

Snip:

by Ty Andros
Editor, Tedbits Newsletter
March 30, 2007
http://www.financialsense.com/fsu/editorials/andros/2007/0330.html
In this segment of the “Fingers of instability” series we will cover the vicious growing attacks on the most productive members of the Developed world (Its causes and consequences, and opportunities), and the unintended consequences (unintended does not mean unanticipated) to their economies and markets. The real currency games now afoot, worldwide. And where the next Tidal wave of money is going to come from to drive Asset prices (means of production, ie businesses, real estate, commodities) on their next leg higher. The commodity bull market is swinging into the second and most powerful leg, get on board.

Please do not mistake my writing for doom and gloom, the world will still grow and prosper as I outlined in “shift happens” (see Tedbits Archives www.traderview.com). Modern communications, education spread far more widely, transportation, international trade, computers, and the Internet will see to it that the future is bright!! All are huge positives with big momentum. There will be untold opportunities for investors, but to capture them you must have a “CLEAR VISION” of broad social trends and the markets that stand to be affected. So as to position yourself to profit from the broad trends as they unfold and roll into your properly positioned portfolios, and avoid the pitfalls of the unintended consequences. Those unintended consequences can be “anticipated” and are big opportunities, you get to decide whether it is an opportunity or a set back by doing your homework. Here is some of mine I do for my clients.

After four years of Rarely seen in history global economic growth worldwide, politicians are set to strike at the hearts of this growth to fund spending that is now on a runaway path. Feeding their reelection plans rather then the seeds of their economies future growth. Nobody wastes money like a government program, they are net negatives, never a benefit to be seen by anyone except to the recipients and the politicians they elect. Wealth killers rather then generators!!! I will rundown the new plans of the recently unveiled “PROGRAMS” to detail the devastating effects to markets around the world as these misconceived plans roll into your pocketbooks and investments.

Governments as Gluttons, wherever you look Tax receipts are at record highs and deficits are receding. Tax Receipts have grown much faster than the economies in which they reside, on average more then 7% compounded annually in the last four years in the developed world and much faster in the emerging world. The only real laggards in income growth have been semi skilled and skilled labor as they have been forced to compete with the wages of the emerging economies huge labor surpluses. This has forced them to reduce the pace of their labor wage growth or lose their jobs to the three billion new entrants just entering the global stage. Those new entrants are just exiting poverty and are willing to work very hard for much less. In China and India 60 hour workweeks are common. And they are smart, having received fairly good educations for the first time in generations.

The majority of the Western workers/electorates do not understand the dynamics of this transition, as they have been conversely “dumbed down” for generations by their political leaders in an effort to create more easily manipulated electorates. Socialism, poor reading, writing and math skills, and Government dependent expectations are drilled into every schoolchild, “lumps of clay” to be fashioned and taught to think in a government decided fashion. And the schemes have worked as now we have majorities in the developed world who have no ability to think critically and reason for themselves. Thus, they are unprepared to meet the challenges confronting them and cannot figure out the solutions necessary to regain their previous successes. And have become lazy at the trough of the wealth they were the previous beneficiaries of.

New leaders that wish to emerge in these countries to “fix the problems” are doomed to fail at the election box as these electorates can’t see the truth of their situations. They have been mentally conditioned and brainwashed. They are frightened by the emergence of Globalization, and don’t understand that globalization is only part of the problem, the other being that they believe they are “victims of others” scattered somewhere else in their countries or the world. So they have banded together to strike out at them through their leaders. Leaders who failed to invest in their own constituencies’ futures, for generations now.