Belmont Club

By Richard Fernandez

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August 20, 2008 - 9:21 am - by Richard Fernandez
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2008-08-20 09:45:20

The difficulty of the cumbya foster development and prosperity ignores the Malthusian reality that is taking hold. Unleashing human potential does not inure to everyone as history shows. Osama had it right when he said pick the strong dog. Heretofore (recent history) the US has held that portfolio. But the world is changing. US equity indices have been flat for a decade and US competitiveness has been eroded (despite what they tell you). Can it come back, sure. Will it reach prior heights, no. Why? The 2.6B others. Even marginal increases in the rest of the world will come at the expense of the US. That is the cold hard truth and one that we should begin to acclimatize ourselves to. Not that this means terrible things, merely look at the UK. Still they live well. But the idea of trying to pawn off fighters they can’t afford is perhaps a foretelling of the future. The idea that it can never happen here is misplaced. If it took being hit over the head with a hammer for people to accept that their house is 60% overvalued, imagine what it will take for American’s to grapple with a dilution of the America centric century. Handing out passports seems like an overly simplistic formulation, if not red herring.