Monday, November 12, 2007

UK Telegraph: The Dollar is Bad (but in a bad meaning good kind of way)

Writing for the Telegraph out of the UK, Ambrose Evans-Pritchard (who holds the record for most British name ever) predicts the US is well on its way to reclaiming its status as the world's dominant economic superpower.

He notes that as our money is devalued, countries will begin to learn that globalization "cuts both ways," as jobs stream into the US (apparently, IT salaries in India are now up to $18/hr.-- I'll take that). To support his claim, Evans-Pritchard notes the last time the US floundered economically, it rebounded stronger than ever after a dollar devaluation (from 1988-1992).

The factor working most in America's favor?

At the end of the day, the US remains the only major power still producing babies a rate high enough to survive through the 21st century as a dynamic society.

China's workforce will peak in 2015. The country will then tip over into the steepest demographic decline ever recorded. It will be old before it becomes rich, doomed to second-tier status.

There are more details, anecdotes and evidence offered in the article, so it's worth the read. As a bonus, it has finally shed a little light on why I had to pay $15 for a burger this summer in London.

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