Moody's downgraded Italy's debt and Nasdaq jumped 2.5%. I am not going to say there is a cause-effect relationship here, because Nasdaq behaves in a hysterical, irrational way. I'am going to say that there is widespread destruction in Europe, that in its effect can be compared to a war.
Why is this good for America? Because its main competitor is Europe. The destruction of Europe's industrial basis will create a situation like after WWII, when America had no competition and the American industrial worker earned a good living wage.
The Japanese competition has disappeared a decade ago. The only challenger still standing is China. China will have to absorbe American exports or disappear like the Soviet Union and now the European Union.
2 comments:
Wrong. European CDO swaps will implode the US just as well. For all your interesting analysis overall (which is great), you are just so wrong when it comes to macro events -- whether it be the stock market or Israel's geopolitical situation.
JC
Having bagged another Nobel Prize today, allow me to be optimistic. Old Europe will continue to decline, the USA will overcome, Israel will prosper and the Shomron will be once more the Jewish heartland.
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