THE US WILL LEAD THE WORLD OUT OF RECESSION

The United States has long been the home of post-WW2 technical innovation, entrepreneurship and venture capital. In part, this was generated by the huge military R&D investments of that war and a post-war influx of hundreds of thousands of engineers and scientists from the United Kingdom and Germany. The boom of the 1950’s was led by the application of military R&D to consumer products and, for most people, the advent of readily available credit. This was the period of Harold Macmillans’ “You’ve never had it so good” and the German “Wirtschaftswunder” (economic miracle).

This culture in the United States is there today, if somewhat buried by excessive government spending, intervention, and the advent of the welfare state.

But, the culture will resurface (this is the only way growth to reduce Federal debt can occur), and it will do it on the back of its traditional skills supplemented by:

·         Cheap Energy – yes energy at a fraction of Australian or European energy costs;

·         Competitive devaluation of the US dollar;

·         The world’s best intellectual property regime;

·         New manufacturing technologies;

·         Strategy designed to repatriate the innovation and production of high end products;

·         Cost inflation in China and other BRIC’s.

When?

2014 onwards.

www.millhouse.co