“Allow me to point out the irony of this situation,” Guido Mantega, the Brazilian finance minister, told reporters at a recent global pow-wow. “Countries that were references of good governance, of standards and codes for the financial systems” were now the same countries where financial problems were threatening to wreck global prosperity.
Whoever could he have had in mind? Not the United States of America…the country that has been wagging its fingers for the last 20 years at every two-bit economy in the world? Americans might have to get used to it. Instead of giving advice to other countries, they may have to take some. There are bound to be plenty of economists in other countries who will want to offer it.
For the moment, they can toss it off. Stocks are still near record highs. Housing prices are only down a few percentage points. The economy still appears to be growing.
Neither investors nor the financial media have yet realised what is going on – the steady destruction of the US economy.
“I’m moving my money out of US assets,” our old friend Jim Rogers told an audience in Amsterdam.
All your money, Jim?
What he said was that he was getting ALL his assets out of the United States. And into what?