“When you visit India…and I suppose it is true when you visit China or Brazil too…you don’t even notice at first…it’s not so much a thought…but more like a feeling…”
We were explaining to colleagues why it’s the end of the world as we have known it.
Back to that in a minute…
The Dow rose 102 points yesterday. If this keeps up we’re going to have to amend our view.
In our way of looking at things…we are still in a prolonged bounce following the big drop of ’08-’09. Stocks have yet to realize that the economy is in a depression. Yes, we know it doesn’t seem much like a depression. Even we have stopped using the term…
Now we’re calling it “The Great Correction”…in which we’re expecting a number of things to get sorted out – including the stock market boom from ’82-’07…the post-’71 dollar-backed monetary system…and the huge credit expansion that goes all the way back to 1946.
But that’s not all. It could be that this period will correct the whole, extraordinary surge in Anglo-Saxon power that began in the 17th century. English speakers have been on a roll since Sir Francis Drake defeated the combined armada of Spain and France in 1588. Soon after England began putting together her empire…and then, the industrial revolution turned Britain and America into economic powerhouses.
In addition to reducing asset prices and de-leveraging the economy, The Great Correction could be reducing the relative power and influence of the English speaking peoples. We don’t know…but that’s the way it looks now…
Returning to our conversation…
“Of course, things are a mess in Mumbai…I mean, the traffic is terrible…the heat is appalling…there are people who look like they haven’t eaten in a month…
“But you can’t help but notice that India is moving forward. It’s chaotic; it’s uncomfortable; it’s unpredictable…but it is going ahead. People are young. Buildings are new. There are new cars on the road…and new shops opening up.
We saw a couple of Tata Motors’ new Nano cars – cute little cars that sell for only $2,500. But there were dozens of car varieties we never see on American or European roads.
“You can’t help yourself…you begin looking into the future…and imagining what it will be like when they finish a bridge or complete a road…or demolish a slum…or find new ways to do things…new ways to get along with one another…and new ways to run the country…
“Then, when you come back to France or America, you’re suddenly back in the past. It’s a relief, because everything seems familiar and orderly. Like a museum. But it’s a let-down too…because you’re back to dealing with old problems…old people…and old institutions. While the emerging economies look ahead…the developed ones look back.”
Bill Bonner
for The Daily Reckoning Australia
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