Investing

What Should Canada Invest In???

noreply@blogger.com (Lexcorp) — Thu, 08 Oct 2009 04:43:00 +0000

Canada’s economy is based on commodities; since our landscape is full of natural resources we have nothing to worry about, right???

At the current rate of consumption, Canada will run out of sustainable natural resources in approximately 40 years. So currently, we have nothing to worry about, but 40 years from now the question will be “So what do we invest in now, eh?”

I hope this post will help produce constructive thinking as well as criticism.

My feeling is that we should be currently investing in many things that will not only just prolong our (Canada’s) economic stability(comparatively speaking), but also help make our resources last longer and or even just develop new alternatives for consuming the limited resources we have left. Canada should:

Invest in Higher Education

This can help generate new talent that will help develop new ways to use the resource we have.
This will ensure we will be able to export knowledge in the form of consulting agencies.
Develop a balance between consumption and production
Colbert Report- Andy Gellman

Invest in Conserving Resources

Develop ways to get consumers to waste less and conserve more

Hybrid cars
Tank-less water heater

The government can push access to these products, but they choose to let consumers decide, and more than likely, the cheapest initial investment at the time

Invest in Mass Transit Infrastructures

Having people live in different major cities and working in another

This will also help distribute knowledge

Invest in Agricultural Development

Always need food and can prove beneficial to harvest other resources

40 years isn’t enough time to figure and implement plans…If Canada chooses to invest the way they are currently investing we will end up like our neighbours south of the boarder. Accumulating debt and consuming well past capacity.

Check out their current debt - http://zfacts.com/p/461.html

Are US investments valid for foreign investors???

noreply@blogger.com (Lexcorp) — Wed, 07 Oct 2009 18:33:00 +0000

As explained in an earlier post, the US government is paying off debt by issuing more debt (this debt has no collateral), and the fastest way to reduce their debt is to cause an accelerated rate of inflation. This has a lot to do with their economy being more consumption oriented opposed to production oriented. (video is mainly about US consumption and is not entirely related to their financial problems).

http://www.youtube.com/watch?v=gLBE5QAYXp8

You will never invest in a business that has been generating more losses year after year, so why would you invest in an economy that is doing the same???

Foreigners buying stocks in US companies for long-term investments will mainly show net losses after converting the currency (This is true even if the company’s stock prices rise).

US Bond Market - Ponzi Scheme

noreply@blogger.com (Lexcorp) — Wed, 07 Oct 2009 17:21:00 +0000

With the recent events of various ponzi schemes being discovered it makes me wonder when, what I believe is the biggest ponzi scheme ever, the US treasury will collapse. With the current recessionary pressures, the US economy is certainly becoming more volatile. The US debt market, which is estimated at roughly $33.5 Trillion, is increasing exponentially. Not only is the deficit in the balance of trade increasing year over year (see figure 1.0) the US government is selling long term debt to pay off short term debt (Isn’t this how Ponzi schemes work???).

Figure 1.0

The only way that the US government can pay off this huge debt is by having an accelerated rate of inflation so that they can pay off the fixed dollar amount of debt. But devaluing the US currency will cause demand for bonds to drop, decreasing the bonds market price and therefore causing high interest rates, angering people that have invested in the bonds. Who would invest in a financial instrument that pays negative interest???

Inflation has already started to happen, just check out the most current US Dollar Index (Figure 1.1)

Figure 1.1

Almost There

noreply@blogger.com (Lexcorp) — Mon, 05 Oct 2009 15:46:00 +0000

Will be Blogging in a few....