Tony Daltorio

The Intrinsic Value of Nothing, Part 1

Worrying about the Wall Street fairy tale called deflation, which is intended solely to sell Treasuries for the government at near zero percent, is like worrying about if some alien species from the Andromeda Galaxy is getting ready to attack....deflation is a complete fantasy and not a worry...future inflation caused by a collapsing US dollar is a worry.


On Oct 27 05:21 PM user396040 wrote:

> Worrying about inflation now is like worrying in 1942 about the unemployment
> that will result when WW2 ends. We are still very much threatened
> by a deflationary downward spiral which could generate the kind of
> unemployment we had in the 1930s. Depressions do bad things to real
> people - suicides occur, couples get divorced, some students will
> never get a college education, trillions of dollars of human productive
> capacity are lost forever, children's development is retarded by
> malnutrition. None of this is really necessary unless public policy
> is straightjacketed by obsolete economic theory.

The Great Bubble of China: Beginning of the End or the End of the Beginning?

What absolute poppycock. Do you work on Wall Street?

If not, you sure have swallowed their Kool Aid. The coastal cities in China being the economic growth engine was true 10 years ago, not today. Economic growth is coming from the vast interior provinces of China.

You also speak of China's low moral standards. In comparison to Goldman Sachs and the rip-off kings of Wall Street, they are choir boys.


On Jul 29 10:52 AM Susan Weerts wrote:

> It is easy to say today that “all that talk in the 80's was just
> hooey.” Let's compare 80's Japan before it collapsed and China today,
> every companies in the world raced to open an office in Japan and
> hot money flew in left and right. Its stock market and housing market
> sky-rocketed. Japanese was on the shopping spree to buy anythings,
> from 7-up chains, Rockefeller center, MGM(or paramount) and etc as
> well as various resources (they gulped up coal, oil and etc) worldwide.
> (Even today, they imported enormous coals, which stored somewhere
> underground in Northern Japan) They had the largest currency reserves
> in the world back then while USA was in a huge deficit and in the
> midst of housing burst. They transferred its old export economics
> into technology-oriented. They had an artificially depressed currency
> compared to $. They launched massive infrastructure projects, including
> bridge-to-nowhere (compared to china's build it, destroy it, and
> build it). They had (still do) very high saving rate.
> They passed massive plans to stimulate its domestic demands...<br/>
>
> It is true that Japan were lack of land and resources. Most of Chinese
> developments concentrates on a few of coastal cities, which are lack
> of land and resources. It is true that you can view these cities
> acting as a hub or financial center for its future inland developments.
> You need some sort of organic growth in those inland areas to foster
> the credible/sustainable growth. China can not just build itself
> out for the future growth, especially majority of building are in
> the already-developed areas.
>
> In addition, Japan's mom-pop organization hierarchy contributed some
> synergy to its economics developments (although it is debatable.)
> China faced more back-stabbing, infighting, and bureaucratic red
> tape.
>
> Then again, anything is possible. China might successfully negative
> itself to the top. As you said, USA might just roll over.
>
> I just want to point out the similarity between 80's Japan and China
> today. Correct me if I'm wrong. I didn't have the first-hand information
> on 80's Japan.

Don't Be Fooled by Inflation

I think most commenters missed a very important point in Peter Schiff's article. That point is that foreign markets and commodities are greatly outperforming US stocks.

I can easily envision that several years down the road, foreign stocks (especially emerging markets) and commodities being much higher while most US stocks continue to only churn water.