Friday, May 19, 2006

Empire of debt

It is said that the average American now spends $20 for every $19 s/he earns, whilst China SAVES 25% of its earnings.

What kind of future will these actions lead to?

A new book 'Empire of debt' looks at these issues. One reviewer on summarises it's ideas as follows:

1. Any leader with the power to act imperial will.

2. Most emperors were smart enough to make a profit from the empire.

3. The American empire loses lots of money and makes less economic sense than any other empire in recent memory.

4. American economic policies will lead to an astonishingly rapid decline in the value of the American dollar.

5. American assets are tremendously overpriced and will either fall in price or remain at current price levels for a long time.

6. Buy gold.

1 comment:

Davout said...

I completely agree that the current climate calls for buying gold.

Investing in some tech stocks in India and China is probably a wise move.