21-Apr-2011

gold_bars

A Synopsis of ‘End Game’ by John Mauldin and Jonathan Tepper

+ Bigger government = lower growth

+ Greece has a fundamentally unstable system and needs to restructure debt.

+ There are 3 large structural changes that have happened over time and which are expected to continue in the US economy:

1) High volatility is created by an increase in exports (China and US)

2) Lower trend growth leads to more recessions

3) Higher structural unemployment means lower skilled workers are out of work longer and more often.

+ The longer we put off the pain of restructuring, the larger the pain will be.

+ In 2021 or 2031 nobody will want to go back to the ‘good old days’ of 2011; technology is getting ready to astound us.

Tidbits

+ University of Texas Endowment Fund took delivery of almost $1 billion worth of gold bars.

+ Royal Wedding is expected to add nearly $1 billion to UK retail sales.

+ Angry truckers in China are publicly protesting rising fees and fuel costs.

+ South Korea Gas is considering investing in Canada’s Arctic to access natural gas for export to Asia. The Mackenzie Delta alone contains an estimated 9 trillion cubic feet of recoverable on and offshore gas with another 26 trillion cubic feet of potential resources.