Salient to Investors:
Fareed Zakaria said:
- America needs reform and restructuring. The tax code is a corrupt mess. The US ranks third in global competitiveness, 12th in overall infrastructure, 24th in the quality of its electricity supply, and 101st in mobile telephone subscriptions.The average age of the US’s 84,000 dams is 52 years, of its 607,000 bridges is 42 years.
- Social mobility has stalled largely because poor children have inadequate nutrition, child care, and education. Eduardo Porter at The New York Times says the US spends substantially less on educating poor children compared to rich ones.
- The US spends less as a % of GDP on in science and research than it did in the 1970s.
Philip Mudd at CNN said the US cannot defeat ISIS – it can win against segments of terrorist groups but not an Islamic idea.
David Brooks at NY Times said:
- We live in a culture that praises the resume virtues and ignores the eulogy virtues.
- In 1950, 12% of high school seniors considered themselves very important, versus 80% in 2005.
- Some audacious narcissism is required to be an entrepreneur.
Ray Dalio at Bridgewater Associates said:
- My success is due to how I deal with not knowing, not because of what I know. Find people who disagree with you and try to see things through their eyes.
- Very bullish on the productivity and innovation of the American economy. The US has a legal system that works, capital markets that work, and a culture of innovation.
- Big data is the greatest American asset and the greatest world asset.
- However, the quality of the government decision-making is terrible and we have to deal with the tailwind of the debt situation.
- Bullish longer term on China as the capital that has been stuck with its state-owned enterprises and local governments flows to others parts of its economy.
- China is richer than the US in assets and liabilities, not per capita, and will grow faster than the US for years. 7% of the 10.3% average growth rate over the last 10 years in China is unsustainable. China’s impressive leadership will manage its debt problem well.
Watch the video at http://globalpublicsquare.blogs.cnn.com/category/gps-episodes/ or read the full transcript