Compare levitra cialis. Levitra testimonials. Levitra. Levitra online consultation. Levitra cialis viagra….

Viagra. Viagra soft without a prescription….

If they may, they may ultimately colonize us, and they'll do it with the cooperation of their loyal subjects here, who'll enact the laws empowering owners of U.S. assets this way in exchange for a bit of the entitlement monopolists earn. Increasingly vague, globally enforcible patents on algorithms and business processes, even the legalistic form of contracts, clearly fit this description.

What do you mean by "American assets", Pete?

When San Francisco based Visa issued shares of common stock, and a citizen of Ireland purchased 1,000 of those shares, are those 1,000 shares an American asset or an Irish asset?

When Honda builds a giant auto assembly plant in Greensburg, Indiana, and hires 2,000 U.S. citizens, is that plant an American asset or a Japanese asset?

When I use revenues from my small Tennessee retail business to buy a vacation condo in Cancun, is that home an American asset or a Mexican asset?

When a Saudi oil sheik uses petroleum revenues to build a mansion in California, is that mansion an American asset or a Saudi asset?

With respect to the Visa shares, the Honda assembly plant, and the California mansion, what difference does the citizenship of the owners make?

Perhaps you could explain further, because your point seems like a non-sequitor. I know your busy, so I'll map out the discussion as I see it.

"It matters not if a creditor is an American or an Armenian: the debt must be repaid and, if repaid in dollars, those dollars will eventually be redeemed for American goods, services, or assets."

'The whole essay is about pressure on the dollar. In which case, it does matter who the creditor is or who is accumulating assets.'

"Neither the world nor the U.S. economy is stuck with a fixed stock of assets. Foreign investment here can, and often does, CREATE assets."

But if I'm writing an article on the future of the dollar, it seems very different if the debt is being held in Armenia or America. If the Armenian will sell the dollars he gets for Dram, the price of the dollar will fall. How can you discuss the future of the dollar without discussing who holds U.S. debt and the likelihood they will continue to hold the debt in the future? I don't understand why you think the trade deficit doesn't affect the dollar.

Charlie

The difference between extending credit to purchase real productive means and direct investment in productive means is a matter of accounting for the corresponding entitlements. As long as the productive means are real, the difference is largely academic.

The difference between investing and buying entitlement to tax revenue is the difference between night and day … or between Angels and Demons. The issue isn't debt. The issue is entitlement to consume without producing. Debt can represent this entitlement or not, but it's a safe bet that practically all Treasury securities do.

Neither the world nor the U.S. economy is stuck with a fixed stock of assets. Foreign investment here can, and often does, CREATE assets.

But this seems misguided:

"Second, when it comes to repaying debt, the trade deficit is a red herring. It matters not if a creditor is an American or an Armenian: the debt must be repaid and, if repaid in dollars, those dollars will eventually be redeemed for American goods, services, or assets."

The whole essay is about pressure on the dollar. In which case, it does matter who the creditor is or who is accumulating assets.

Charlie

Seek and ye shall find.

What a splendid piece, thanks, I had a good laugh.

That said laying out “the hypothesis that the nature of market valuations and economic cycles is both causal and quantitatively decipherable” could be quite dangerous though. Can you imagine credit rating agencies getting hold of this and use it to lead us over the next subprime precipice?

Or perhaps what we should lament is the credit rating agencies not getting hold of this in time.

Might? Does the professor not know or is this just a valiant effort to keep a stiff upper lip

Pete Murphy
Author, "Five Short Blasts"

Posted by: The Economic Fractalist | Sep 9, 2008 8:10:59 PM

——

That was the longest single damn paragraph I have ever seen. You invite people to read your stuff then subject them to that?

Did you not ever learn about paragraphs, breaking a piece down and organizing it so that it is reader friendly?

If you have good ideas in that my friend, most people will quit long before they get to them. It is just too damn tedious.

You'll be happy to know that for the first time ever a customer asked for a credit default swap on treasuries. I don't know if it actually traded or not, but this is quite a request for a security that was previously thought of as default-free. So, you may get your wish yet.