Saturday, October 29, 2011

Another interesting video and some of my thoughts on investing.....

This video talks about a vision of how America pulls out of our current slide....I find Mark Dow to be well thought out and very bright. (I wish I could look so deeply at the big picture as people like Dow do)

Watch the video and then continue down to some thoughts I have on this, and how I am thinking about the future and my own savings capital.

Well, I also believe the USA will continue our slide and continue to lose our importance in the world. This will result in higher prices because of our slipping dollar and our slipping value to the world.

So what to do.....first, it depends on how we pull ourselves out of what I think of as the 'Occupy X Inequality". I think the Occupy Wall Street  simply want to strip the wealth from anyone who has it and give it to anyone who does not. If this is the way the country decides to go, then the obvious answer is to get out of dodge.....not so much flee the country, but make investments elsewhere where things might be sheltered or hidden from the grabbing claws of those doing the "redistribution"....I hate to think like this, but I also think I have done the right thing over my life in saving, and my gains are in no way "ill-gotten" like you would expect anyone to do, I want to keep them.

Having said that, I hope the government tries to try another tack....let's try to "grow" our way out of things.....let's make jobs by giving incentives to business in areas we so badly need.....areas we might be able to lead the world in.

So I am thinking I need to convert my savings to some sort of business....what that is, I am not sure.

Energy is something I think we will all see changes to in the future....I am thinking about some sort of wood pellet business. Perhaps dove-tail that will a recycling gig....but I don't want to get too deep into something I have not fully grocked out.

But the concept is the make money, one needs to take risk, and to add value. The value I see for the future is to create something....and create a business around that which adds value. (here and abroad...)

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The job situation today poses an interesting question for those on both the left and the right. Why is it or how can it be that companies in the standard and poors five hundred are seeing their earnings soar while at the same we are seeing such animic job creation by the private sector. The answer technology. Labor saving technology and also the increasing ability of many companies to move not just physical production overseas but also white collar jobs overseas. What we have here is a very serious dilemma on the one hand increasing productivty can keep prices down their by keeping inflation in check. But theirs a problem in our economic system. If a company is profitable and productive they could use their increasing productivity to improve both wages and benefits of their employees and they could also use their increasing productivity to lower prices or at least not raise prices. On the other hand they could use their growing excess profits which are directly related to their increasing efficiency and productivity to buy back their stock pay a larger dividend and do acquisitions or just hold the cash on their balance sheet. Rather than increase and improve the wages and benefits of their empolyees and lower or hold prices of their products and services steady. I believe the vast majority of the businesses in the united states have chosen to do the latter. In order to expect companies to pass on their excess profits in the form of lower prices or stable prices we must see increased competition among firms in the same business. This is often absent. Look at the huge money center banks that have a hold on huge regions of the country. With fewer competitors these companies can keep much of their excess profits instead of being forced to pass them along to consumers.. Another factor that is at work here is the tremendous amount of competition for jobs in the labor market as long as unempolyment remains high many companies are not inclined to increase wages and improve benefits. In the end we have a growing mismatch between the ability of the average consumer to afford the products and services being provided to the consumer by business.

1:55 PM EST  

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