Pragmatic Capitalism
I wanted to pass along some excellent thoughts from Mark Lapolla of Knight Capital. He was in the latest welling@weeden and had some excellent thoughts on the overall economic environment.
He touches on a variety of topics including some MMT, but the most interesting portion was his belief that China now resembles pre-depression USA or 1990′s Japan.
Lapolla is astounded at how the world has come to rely so heavily on a “repressive, communist regime employing command and control economic management while violating trade protections and human rights everywhere”.
Attached are the 8 reasons why Lapolla sees similarities between China and USA prior to the Great Depression:
1) Massive disparity of wealth, income and educationI highly recommend reading the piece in its entirety.
2) Rapid industrialization and displacement of labor
3) Opaque and misleading economic and financial data
4) Massive build-up of leverage across the “rising class”
5) Bubbles in both residential real estate and fixed asset/infrastructure development
6) Accelerating and uncontrolled growth in disintermediated credit
7) Expected transference of economic growth to domestic demand.
8) An accelerating price/wage spiral
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