Enjoy the Fruits of Empire, for Now

Jan. 8, 2013
The best advice is to tune out the circus and enjoy the benefits of empire, at least for a little while more…

The current clown show in Washington is empowered by the lack of a true sense of urgency.

The power the U.S. possesses with the Dollar allows it to export debt, inflation, and almost any other economic malady to the rest of the world, while reaping none of the whirlwind.

It is a unique position, reinforced by the power of the U.S. consumer, which is about 22% of all global GDP.

This means that the rest of the world must prop up the U.S. economy – with all of its problems- so that it can continue to do business with it.

The U.S. has been able to run up these huge deficits because investors around the world still stand in line to buy U.S. treasuries and finance the national debt with expected returns at less than 2%.

When this begins to change, it will be the moment for the U.S. to reign in its profligate spending and start getting serious.

However, there is nothing on the horizon to indicate that such a change is coming. 

In fact, despite all of the fallout from the 2008 financial crisis, investors have doubled-down and increased their buying of US Treasuries, whilst interest rates- and their returns- have fallen precipitously.

The best advice is to tune out the circus and enjoy the benefits of empire, at least for a little while more…

About the Author

Andrew R. Thomas Blog | Associate Professor of Marketing and International Business

Andrew R. Thomas, Ph.D., is associate professor of marketing and international business at the University of Akron; and, a member of the core faculty at the International School of Management in Paris, France.

He is a bestselling business author/editor, whose 23 books include, most recently, American Shale Energy and the Global Economy: Business and Geopolitical Implications of the Fracking Revolution, The Customer Trap: How to Avoid the Biggest Mistake in Business, Global Supply Chain Security, The Final Journey of the Saturn V, and Soft Landing: Airline Industry Strategy, Service and Safety.

His book The Distribution Trap was awarded the Berry-American Marketing Association Prize for the Best Marketing Book of 2010. Another work, Direct Marketing in Action, was a finalist for the same award in 2008.

Andrew is founding editor-in-chief of the Journal of Transportation Security and a regularly featured analyst for media outlets around the world.

He has traveled to and conducted business in 120 countries on all seven continents.

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