Hedge fund manager Peter Thiel was on Bloomberg today. Here’s a choice quote:”Well I think people are too focused on whether we’re in a U shaped recovery, a V shaped recovery, an L shaped recovery – people are too focused on the question on what’s going to happen in the next 6 months. The question for the U.S., Western Europe and the developed world is really what’s going to happens over the next 20 years. Are things going to be better in the next 20 years than they are today?
And I think that in long run, the short run becomes the long run. We’re sort of at a point where short run thinking has run out of time in the U.S. So it’s not a question of can patch things up in another year with another stimulus, bail out the banks or anything like that, it’s actually how do you get things in better shape over the next 20 years. The only answer for the develop world is technology and innovation. We can’t compete with China on labour cost, this is not an option. Globalization without technology means just an increasingly Malthusian struggle for resources. So that’s why I think the question about technology is so important and critical for the U.S.”
Given all the talk about China hoarding rare earths this is a particularly important question today.
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