Wednesday, May 26, 2010

Situation in USA

Anonymous said...Ferfal,

Are you back in Argentina? Will you be posting your thoughts on your visit to USA?

Russell,

Being an exporting country does not mean you are wealthy. The key is whether you are exporting high quality 'value added' goods or raw materials. Most countries that export raw materials (even oil, except for a few like Saudi Arabia) are poor. It's an export trap and has to do with things like currency valuations, foreign owneership of goods, foreign debt, etc.
May 26, 2010 6:33 AM

Yes, still in Texas. The situation here is pretty good in spite of the crisis but I've been told that most other States arent doing as well so its not a reflection of all US.
I was expecting a more degraded economy but Texas surprised me in that regard. It's good that at least some States are doing better than others because that helps when you look at the complete picture. The country would be a wreck if every State had the unemployment California has, for example.
There's still some changes of course, and as I said several times I think that the raise in crime will catch people by surprise th emost, they just wont see it coming.

I think its no coincidence that both myself and a friend witnesses crimes  (car robbed, bank robbery) at the same time while on the phone. The hotel clerk said that trucks were being carjacked when trucks stopped to have lunch too, apparently that didn't happen as much before.

You are right about Argentine exportations, I was about to clarify that. Its not the same thing to export raw good like soy and other grains than actually producing goods of added value like technology or machinery. Even the gold exported by Argentina leaves a ridiculously amount of profit thanks to corruption, the profit going entirely to the foreign company that bought the rights under shady conditions. (Barrick Gold)

FerFAL

6 comments:

Weaseldog said...

In the D/FW metroplex (North Central Texas), we don't really get the economic highs and lows that seem to plague the East and West coasts.

It's just a matter of time though, before folks begin migrating here at a faster pace than our economy can keep up with. Once the unemployment benefits run out, folks in the harder hit areas will have no choice but to move to where the jobs are.

Anonymous said...

Texas' economy is still kicking pretty well, especially along the border where Mexican shoppers still come to, sorta. Cartel violence has cooled that down enthusiasm some though.

Other regions - well, check out Main Street and the bordered up windows / doors. Bigger cities, check out the 'Rent Now' signs. Some places are still booming, but there are some small towns that are feeling the pinch, especially in the rurals.

Hope you can take the heat Fernando, Summer ain't even breaking up a sweat. August / early September - whoo boy!

Vaya Con Dios.

Bones said...

There are plenty of places in the US where you'd be hard pressed to find examples of economic decline. Perhaps a few more empty storefronts, a few more "for sale" signs in front of houses. The only way to truly kill the US economy is to saddle it with so much debt and regulation that it's impossible for businesses to make a decent profit.

Of course, that is exactly what's happening right now.

russell1200 said...

Exports (net exports really) don't make you wealthy. But they do get you foreign exchange which you can use to help pay off your debt. Both Argentina and Greece (in an odd sort of way) have their debt denominated in a foreign currency. So if they have no products that anyone wants to buy, they will not be able to pay off their debt.

The best explanation I have seen of Greece's predicament is to think of the Euro as a pegged currency. Somewhat as if everyone was pegged to a Deutchmark-Euro peg. Since Greece cannot create Euro's, and since their debt is so large, they must find a way to attract these Deutchmark-Euro pegged monetary units into their country. Since they are a net importer at the moment, that will be very difficult.

Pete said...

Our welfare, unemployment, and SSI programs are currently keeping our crime situation at bay (we're basically paying a robber not to rob us). But when the entitlement well dries up and the foreign Gov'ts refuse to finance our debt; watchout: the S will HTF!!!

Anonymous said...

3.00 dollar cupcake in NYC with 30,000 operation permitting fee per year ..seems like 1.50 expense per cupcake......that for NYC? must be the 85,000 a year teachers and its union to keep morons teaching morons taught by morons,,,but ...got money?