It used to be that capitalism was a mirroring image of natural competition and evolution.
That’s why they call it the free market.
You made a product that people needed and wanted – not necessarily in that order – and if your product was good, people would pay good money for it.
That was the “good money for good products” glory time, when Cadillac use to mean the best money can buy.
Then some brilliant ass hole came up with the idea that you can make more money if you make a lot of cheap “disposable” goods.
And that brought us in the “consumer capitalism” phase, where we started to loose “the best in the world” title but we made lots and lots of money.
Then some other brilliant genius came up with the idea that we don’t’ have to make the products in USA anymore we make the junk wherever the labor is cheapest and sell it over here at astronomical profits.
Ant that is when “Made in China” became a national logo.
But making junk in China was not profitable enough so we decided that making nothing over here and selling it for billions was even more profitable.
Thus, we had the dot com bubble and of course the first bubble burst that inevitable followed.
The dot com bubble was gone but the idea of selling nothing was too good to drop so here we go again, this time with the subprime – real estate bubble.
Of course that ended up with a big bang also, and we are still trying to clean up the mess it created.
The interesting thing is the way we are fixing the “irresponsible” actions of the financial community is by “irresponsible” actions of the government.
Here we go again in a bubbling situation.
The money bubble.
How long do you think this bubble will grow before it pops?
Because, I am sorry to say it, but any bubble that keeps on growing has to burst at a certain point.
OK, we are going to pay back our debt. The question is how?
We have to make again products that are better and cheaper than what the Chinese are making and sorry folks but the only thing we seem to be good at, is blowing bubbles.
Looking into my crystal bubble, the future doesn’t look vey bright at this point.
It is going to be a very interesting ride, to say the list.
What do you say?