End of Golden Era for Investors Spells Troubles • Hacker News Board

Re: End of Golden Era for Investors Spells Troubles

#161

Post by pbhjpbhj » Fri, Apr 29, 2016, 9:20 AM UTC

RyanZAG wrote: post #126

pbhjpbhj wrote: post #30

Earlier quoted context omitted.

I'd assume you're right. Some evidence would be good to see - strikes me that instead of prosperity shifting to less developed nations it could instead be shifting to the already wealthy capitalists?

It's shifting to wealthy capitalists in developed countries (well not shifting, they were always wealthy), as well as creating new wealthy capitalists in developing countries. There is some extra wealth for the poor, but you're right that it is an unequal distribution in developing countries. But those aren't "already wealthy capitalists". They're "newly wealthy capitalists". End of the day it's the same thing - a fe…

Thanks for your input I dispute that wealth concentration to the extent we have now is a universal truth however.

Re: End of Golden Era for Investors Spells Troubles

#162

Post by cm2187 » Sat, Apr 30, 2016, 6:24 AM UTC

eli_gottlieb wrote: post #158

kspaans wrote: post #116

Earlier quoted context omitted.

I've always wondered what the reasoning for not including housing in the CPI is.

Because the culturally normative lifestyle in the USA is to own your housing, not rent it. You're thus supposed to count housing inflation as a rise in your asset portfolio, not a rise in costs.

But typically people borrow to buy, and the more expensive the property the more they have to repay, so the impact on their purchasing power is the same as if they were all renting.

Re: End of Golden Era for Investors Spells Troubles

#163

Post by RyanZAG » Sat, Apr 30, 2016, 5:59 PM UTC

pbhjpbhj wrote: post #161

RyanZAG wrote: post #126

Earlier quoted context omitted.

It's shifting to wealthy capitalists in developed countries (well not shifting, they were always wealthy), as well as creating new wealthy capitalists in developing countries. There is some extra wealth for the poor, but you're right that it is an unequal distribution in developing countries. But those aren't "already wealthy capitalists". They're "newly wealthy capitalists". End of the day it's the same thing - a fe…

Thanks for your input I dispute that wealth concentration to the extent we have now is a universal truth however.

Definitely free to dispute! It's just my personal view. I get this view because I have never come across any situation throughout history where wealth did not work this way.

If you sell fish, and do really well at selling fish, you'll acquire wealth. That wealth will let you build bigger boats than someone without wealth. Same seems to apply to everything. Even little apps on the app store. If you make a successful app, you get a large following of users. This will give you a springboard of users when launching your next app, and having all those users on your old app gives you valuable data on how to build the next one.

Do you see where I'm coming from about the nature of wealth?

Re: End of Golden Era for Investors Spells Troubles

#164

Post by paavokoya » Sun, May 08, 2016, 5:30 PM UTC

dragontamer wrote: post #156

pm90 wrote: post #150

Earlier quoted context omitted.

Deliberately defaulting on debts is probably the worst thing for a sovereign nation to do. The governments of other countries may still be do that risking higher interest rates as you mention. However, if the USG ever does that, there will be consequences far more dire than China or SSA or the Fed losing money. And there are many reason for the low rate of interest, but historically, USG securities have been the safe…

It just means people will stop trusting the US Dollar. Pretty bad for the US, but I don't think it'd be a catastrophic worldwide event. Interest rates will go up, and it will become even harder for the US to pay back the debts, and it will become much more difficult for the US to borrow money in the future. Bad all around of course, not something to be trifled with. But its a relatively simple prediction to make.

>It just means people will stop trusting the US Dollar.

This means the USG stops exerting political power. and even with all our military, money is more important. Look at Nazi Germany. They failed after exhausting their military because they couldn't keep influencing nations with money.