kcbar

Think about taxes. . .

I am for Reasonably balanced trade, and consider myself a moderate libertarian. However, free markets can't fix the massive trade imbalances, since rigged currencies and government policies perpetuate the imbalance. Countries with massive populations are pursuing export led growth strategies. The size of the imbalances is so large it creates massive capital allocation distortions, and consequently systemic risk. If we don't fix the imbalances, the next default-induced liquidity event will bring down countries and currencies.

Great commentary. I really appreciate the posting, and agree with Andy Grove.

I'm with benhacker. Government allocates a portion of society's capital. If it does so at a negative rate of return, it reduces output and standards of living for future years. Economic growth comes from good capital allocation. It's no different than your portfolio returns.

Buffett mentioned at the annual meeting that they were writing less Cat insurance due to lower pricing.