DragonSlayer

5 Reasons Why the U.S. Dollar Will Weaken Further

This is for DragonMaster. I think you are right. It is well known that the US population will contain 50% blacks and Hispanics by 2040-2050. However, I think this would mean that manufacturing jobs will actually come back to the US. There will be intense competition for the low-paying manufacturing jobs by these population segments above, and labor rates will head towards 4-5$/hour instead of the current $15-20/hour. Also, given the increasing cost of oil, and also the political situation, it will be overall cheaper for US companies to move manufacturing back to USA. The US is still the largest market in the world by a huge margin. Chinese consumption will take a very long time to match US consumption because the cultural nature of Chinese is to save and not consume. So manufacturing in China will decline or stay flat as the US imports less. I think India and Russia will however do better than China since their exports are software and other high end products. Since the blacks and Hispanics in the US are mostly low-skilled, and will probably stay that way, they will have a tough time competing in that area. However, I know many Russians and Indians still want to come to the US, and if the talented ones end up being here, then they will be able to keep the US competitive at the high end. The decline of the US is greatly exaggerated.