Rohirrim
02-24-2006, 12:39 PM
Excerpts:
The current political saga and debate about the purchase by a Dubai-based company of the management of six US ports misses the most crucial point: with a US current account deficit running towards $900b this year and probably above one trillion $ next year, in a matter of a few years foreigners may end up owning most of the U.S. capital stocks: ports, factories, corporations, land, real estate and even our national parks.
Also, the worry about unfriendly regimes is somehow misplaced as, unfortunately, the countries that are now financing the US current account deficit are not our friends and allies but, potentially, our geopolitical rivals or unfriendly states. In the 1980s, the biggest financers of US twin deficits were the U.S. geo-strategic allies: Japan and Europe. Today instead, the biggest financers of the U.S. twin deficits are China, Russia and Saudi Arabia.
So, for its own financing the US is effectively captive to the political decisions of potentially unfriendly states, an indeed worrisome "balance of financial terror". The war on terror and the war in Iraq are being financed by China, Russia, Saudi Arabia and a bunch of other unfriendly or unstable countries (Nigeria, Venezuela, Iraq, etc.). And all these countries and their private and public investors, whether friendly or unfriendly, now increasingly want to buy US equities rather than useless bonds. So, a Chinese company recently acquired the PC division of IBM and Chinese companies are already managing parts of US ports. So, whether we like it or not we will, increasingly, sell all of our assets and capital stock to foreigners, whether these foreigners are friendly or unfriendly to US.
So, let us stop whining about the dangers of unfriendly foreigners owning our firms and assets and get used to it. Unless we change our spending habits and stop our reckless fiscal and economic policies that are leading to the hollowing out of the US as a competitive producer of goods and services in the global market, the Chinese will indeed own most of America and its assets.
So much for the U.S. dark matter and mysterious intangible assets; with our policies we are instead digging ourselves into a bigger and bigger black hole of liabilities that will eventually sink us all.
http://www.rgemonitor.com/blog/roubini/118568
Greed is good. ;D
The current political saga and debate about the purchase by a Dubai-based company of the management of six US ports misses the most crucial point: with a US current account deficit running towards $900b this year and probably above one trillion $ next year, in a matter of a few years foreigners may end up owning most of the U.S. capital stocks: ports, factories, corporations, land, real estate and even our national parks.
Also, the worry about unfriendly regimes is somehow misplaced as, unfortunately, the countries that are now financing the US current account deficit are not our friends and allies but, potentially, our geopolitical rivals or unfriendly states. In the 1980s, the biggest financers of US twin deficits were the U.S. geo-strategic allies: Japan and Europe. Today instead, the biggest financers of the U.S. twin deficits are China, Russia and Saudi Arabia.
So, for its own financing the US is effectively captive to the political decisions of potentially unfriendly states, an indeed worrisome "balance of financial terror". The war on terror and the war in Iraq are being financed by China, Russia, Saudi Arabia and a bunch of other unfriendly or unstable countries (Nigeria, Venezuela, Iraq, etc.). And all these countries and their private and public investors, whether friendly or unfriendly, now increasingly want to buy US equities rather than useless bonds. So, a Chinese company recently acquired the PC division of IBM and Chinese companies are already managing parts of US ports. So, whether we like it or not we will, increasingly, sell all of our assets and capital stock to foreigners, whether these foreigners are friendly or unfriendly to US.
So, let us stop whining about the dangers of unfriendly foreigners owning our firms and assets and get used to it. Unless we change our spending habits and stop our reckless fiscal and economic policies that are leading to the hollowing out of the US as a competitive producer of goods and services in the global market, the Chinese will indeed own most of America and its assets.
So much for the U.S. dark matter and mysterious intangible assets; with our policies we are instead digging ourselves into a bigger and bigger black hole of liabilities that will eventually sink us all.
http://www.rgemonitor.com/blog/roubini/118568
Greed is good. ;D