Cliff Beacham CPA | email cliffbeacham@cpa.com | California | Tel: (949) 813-1349
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Tel: (949) 813-1349
Have I glimpsed the future world?
This article is full of gaps and leaps. It is not meant to be any other way. A comprehensive coverage would
fill a library with facts, interpretations, explanations and theories – therefore it would be impossible. So
here are some thoughts, however disjointed. The reader should fill in with their own interpretations and
speculations. Click on the links below for more information:
The US dominated because of their initiative, creativity and new inventions (Steel, Oil
and Electricity). The American dream seemed as if it would last forever.
Japan began to be challenged by other Pacific-rim countries and the US began a decline.
The UK had staggered back from WWII now became the connector between the USA
and the rest of Europe.
Japan did their accounting wrongly and did not respond to bad debts. Their investments
were made in the USA but they did not really understand the environment. When the
challenges came from other Asian countries, Japan's economy deteriorated.
The main market was the USA whose purchasing power was seemingly unlimited.
So what was happening to the USA during this time? Manufacturing makes only small
profit margins whereas retailing achieves a much greater markup. So profit was made in
the US and everyone was happy. The US changed emphasis to being a Service-based
economy. Then came the information age – the tech revolution. The world moved onto
a track towards globalization. Distances meant less and less – cheap labor became the
desired resource of industry. Japan's debt ratio is now >2x GDP.
Once upon a time the economies of all countries were based on subsistence farming.
Then came the idea of Agriculture as a business.
Agricultural is the first step towards a developed economy. The third world (and the
fourth world) is still subsistence farming.
Gold
Coins
Bank notes
Credit/debt
Ponzi schemes/derivatives/printed money/Securitization
Agriculture
Industry
Services
Information
Technology
Finance