Dave Wrixon

Clarifying America's No-Win Economic Dilemma

Basically on track, except that you forgot to mention that America's share of global GDP is highly exchange rate dependent. As the US currency is clearly headed for a steep decline as the US is increasingly regarded as a poor investment destination, then even without growth underperformance the status of the US within the World is going to decline sharply. The days in which the rest of the globe underwrote extravagences of the US consumer and the Federal Government are over. The US is going to have to start paying it dues by supply the World with goods and services at competitve rates rather than simply as a priviledge of its global hegemony. Unless the US gets its act together and quickly its economy is going to turn to dust.

Bullish on America

If this is all true why is the capital investment that would drive America's future so obvious by its absense? It went missing about 20 years ago and has never rung home.

Global Markets in Review: Signs of a Bottom Embolden Investor Appetite

"If a man is offered a fact which goes against his instincts, he will scrutinize it closely, and unless the evidence is overwhelming, he will refuse to believe it. If, on the other hand, he is offered something which affords a reason for acting in accordance to his instincts, he will accept it even on the slightest evidence."

Which is precisely why markets behave like lemmings.