US inflation up , dubious growth , budget deficit somewhat reduced but external trading showing same weakness .March 2013 –


The inflation at 2 % with slow economy growth shows stagnation whether we like it or not . The petrol price at retail level is raising to confirm this as american citizens are highly sensible to petrol price because petrol is in the roots of their consumption needs .

Used capacity remains below 80 % and although budget deficit is closing the gap probably because of recent tax moves which impact need yet be fully perceived , the external current account continues to show the need to improve competitiveness .

No surprise that the dolar is gaining ground in a move to keep hold of petrol prices and to compensate for the ailing current account deficit ( external trade ) it is good to see that in the TICs ( capital flows ) the inflows are substantially dominating and growing to quench fiscal disagreement effects between democrats and conservatives

But at the end of the day the same question is on the table . For how long can the US economy be based on external financing ?

Remember that the private and corporate debt is much higher than the economy may bear, specially as unemployment shows a tremendous loss of jobs in the selective manufacturing sectors responsable for the creation of richness which is having a strong influence in the loss of purchase capacity as well as in the income tax revenue .

The US probably needs to review traditional tax structure to favor development of added value ventures and companies and the recovery of a middle class earning salaries between 70.000 and 120.000 $ while GINI indicator is reduced from the current figure of 0.46 .

It does not mean reducing or increasing taxes but establishing a more selective distribution of taxes in sales, income and corporate profit . ( Making money through speculation is not as healthy to real economy than making money through long term added value investments )

Brahmason

Brahmason@gmail.com

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Published in: on marzo 15, 2013 at 6:06 pm  Comments (6)  

Quantum computer


The materialisation of quantum computer should not be far from now .

Research leading into quantum computer should be based in my opinion on the remote twin particle behavior ( entanglement ) which allows to have a complete visualisation of the theory of sets on a four dimension basis .

As the quantum computer will become a reality , obviously there should be an unique essential algorithm that would shape as a function of the specific coordenate of the space time continue being observed at any time .

In my opinion as quantum computer will be a reality , we will know it better from the geopolitic consequences than from the announcement in the in the paper you are used to read .

Brahmason

Brahmason@gmail.com

Published in: on marzo 15, 2013 at 10:41 am  Comments (3)