[GeorgeF]

1) The US has basically an open border with regards to unskilled labor. Japan seems not to. This makes things like restaurant meals in New York City very cheap, while increasing the cost of medical insurance. If there is an economic downturn I hate to think about what will happen with these guys unemployed, I doubt the US can deport millions of them.

2) China and other Asian nations seem to like to make stuff, but do not care if they are paid for it. Is that a Confucian/Shinto thing like the sound of one hand clapping? I read stories about conveyor belts being shut in Chinese factories to save money by using manual labor to move things. I wonder how long that can go on. The world economy works like this: Asians make stuff, Arabs sell oil, Americans build houses, Americans get all the stuff, oil and live in the houses. Go figure.

3) Housing in the US is likely way overvalued in certain markets, but remember, transportation in the US is very poor. Basically third world. There is no bullet train that allows people who work in NYC to live in Pennsylvania. I personally think what did Japanese real estate in was the Bullet train, not economic policy.

4) There are too many auto makers. With the Koreans and in the future India (TTM), China and oddly Canada entering the markets someone is getting voted off the island. Right now it seems to be Fiat but I would not be surprised to see Ford disappear as Chrysler did. People say 'so what' but autos are an important industry in the US.

5) Assuming that the tails stop falling off Airbus aircraft it seems that Boeing could be in long term decline. That is a huge development and an indication of how out of touch US government is.

6) Medical costs are out of control in the US and the government, which is insulated from medical inflation, does not care.

7) I have trouble believing in gold as there is so much of it stored above ground. I do not believe that there will be a gold based currency in the future.