With all the created controversy of a non-event; namely the Dubai Deal many are starting to talk about restrictions on foreign investment again. Any free market economists worth his salt knows that talk like that is a bad sign. At least one political blogger stated recently in a question comment; Why can't there be an overhaul of foreign investment. The answer is simple we need that money flow to re-circulate here, but we have killed all our manufacturing with over regulation, we do not make anything in the nation anymore, well except hamburgers I guess. (exaggeration, but you get the point). So we need to find a way to allow the money flows back to our shores. It would be better to allow money flows back in kind; for instance oil for something we mine here such as some sort of raw material and in the case of China we buy their goods, they should buy ours, but that is not happening is it? Regarding fear of foreign money taking over, lets look at some recent history shall we? Remember when Japan tried their second sneak attack and bought up all the real estate what happened, everyone was angry, then the bottom fell out of the real estate market and US companies like Carr American, Tramwell Crow and the like came in and bought them back up for pennies on the dollar. The Japanese bought golf courses, high-rises, all sorts of stuff. Why, because America is a safe investment and had laws allowing foreign investment and the Japanese interest rates in the banks in Japan were only giving 1% and some you had to pay them interest or a negative interest rate just in order to park your money there. Why did they have all that money in the first place? Because Americans bought Japanese cars from Honda, Toyota and Datsun (Nissan-changed the name back-I guess people forgot about who made those WWII Japanese bombers? Oh history lessons?). All this during the Deming years and what do we see now; a repeat with Japanese Hybrids and low gas consumption models? You see really, we are our own worst enemies. Meanwhile the healthcare costs are rising for Automakers, unions are demanding more and more and everyone is blaming whom for all these trade deficits? Dubai World? What on Earth are they talking about? You see America, us, as in we the people have been screwing over American Business with all these rules, excessive government. Oh yah sure let's blame all our problems on China and Wal-Mart, no let's blame Dubai World? No tomorrow is a new day quick lets blame someone else? Wake up people you want to win the game, then study the flows of civilization and fix the problems and in-efficiencies. Hell we have 10B per month going to Mexico, how much do they buy from us? They buy more from China than us now, but China already has all our monies (slowly but surely) and the flow and what is really happening to all that money? Well the Chinese are spending billions to buy Mig Fighters from Russia, nuclear submarines and the largest military build-up in human history minus a few years during the middle of WWII. But China has no rivals, enemies or threats? Why do they need a military as large as ours; whoops; a little too much foreshadowing for you? You want to talk about foreign investment; sure lets talk, but lets not kid ourselves or start calling Dubai World onto the carpet, until youall understand about the flows of civilizations and real world interdependencies? Consider all this in 2006. |
