“THE OUTSTANDING QUESTION IS WHETHER GOVERNMENT AND CONSUMERS WILL CHOOSE TO CONSUME OR SAVE ONCE THE GOOD TIMES ARE HERE AGAIN. ” Jackson sought to drive out paper money
For just one example, opportunities
that it neglected to see the opportunities
with no intrinsic worth from serving from
abound in commodities that play into
of the frontier and instead chose to
as means of exchange for the purchase of
secular growth trends of urbanization
Àght unproductive rear-guard actions.
public lands by issuing an executive order
Rubber is one such
Likewise, investors would do well today
known as Specie Circular.
opportunity. Rubber prices are up Àve-
to move beyond the subterfuge that is
only gold or silver was to be accepted as
fold in the last decade compared with
the debate over stimulus, quantitative
payment for purchases of government
an 18% rise in all other agricultural
easing, and inÁ ation protection and
owned land. The order induced a credit
raw material prices according to the
instead hone in on the most promising
contraction that threw the economy into
latest IMF economic data.
a depression for the next Àve years. Now,
the decline of the U.S. and Western
economy as the best defense against the
as then, the controversy circulating within
European auto markets since 2008, the
ills of the macro economy. iBR
the investment community was mainly
world auto market has been galloping
ahead as urbanization, investments in
The focus should have been
In spite of
on agitating for the growth that frontier
incomes, the development of domestic auto
industries, and government deregulation
the broader U.S. body politic is again
have spurred emerging market consumer
wrestling with the dilemma of proÁigacy
uptake of cars.
or parsimony, Investors would be bettered
of cars grows rubber demand should
served looking for growth as the best way
continue to grow independent of auto
to shield themselves from a backslide to
sales growth as normal wear and tear
recession or an acceleration to inÁation.
necessitates replacement sales. In 1837
There is growth to be had if only one looks
Jacksonian America became so wrapped
in the right places.
up in its own vendettas over “bad” money
As the installed base
FA L L 2 0 1 0
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Epigram For Wall Street I‘ll tell you a plan for gaining wealth, Better than banking, trade or leases — Take a bank note and fold it up, And then you will find your money in creases! This wonderful plan, without danger or loss, Keeps your cash in your hands, where nothing can trouble it; And every time that you fold it across, ‘Tis as plain as the light of the day that you double it!
-- Edgar Allan Poe, 1845
I N T E R N AT I O N A L B U S I N E S S R E V I E W
11/27/2010 3:13:03 PM
Fall edition of the IBR magazine at the Wharton School.