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United States Is Vastly Different From Europe

United States Is Vastly Different From Europe

By    |   Monday, 13 June 2016 08:13 AM

The investment gurus who rule the markets operate under the assumption that United States of America and Europe are the same.

Investors up to now have also bought into the same story.

Investments in stocks, bonds and other assets are treated as if the culture they come from and the rules they live under are indistinguishable. The investment gurus tell us that globalization is the great equalizer in what is seen, via the insight of Thomas Friedman, a flat world.

It was a lovely thought and sold a lot of books and investments. But reality has caught up with investment gurus and Friedman.  The world is a lot of things, volatile, chaotic, violent, even full of beauty, wonder and charity, but it isn’t flat.

Why should investors be concerned about the differences between the European Union and the United States?

Simply this:  As the European Union runs out of steam, so to speak, significant investment capital will out of necessity come to the only financial safe-haven in the world. That is, the United States.

The concept of Europe is inextricably bound up in the concept of Christendom. That notion is critical in identifying Europe and Western civilization as against the rest of the world. Europe was, however, never homogeneous.

Even in its earliest formation, it was divided between the church in Rome and the East; between competing Popes and Emperors.  It was a land whose rich history is that of petty kingdoms, fighting trivial squabbles, divided by tribal cultures, languages, and religious belief.

Europe is much the same to this day. 

The United States was created as a single concept unified under a written constitution which specified that its entire people were governed by one set of laws.  It created a unique culture that the world had never seen before.

The United States is a multi-ethnic society, but it has only one culture. The American culture. We are a nation of immigrants from the world over, but everyone becomes an American.

How does that translate to the real world that in which people live and investment?

Other countries of the world could do what the United States does.  Europe has about the same size population, resources, education, and all the other accoutrements of a 21st century economy.

But the United States, not the European Union, is the largest energy producer, largest producer food, largest manufacturer, and it has more immigration annually than all the other countries of the world combined.

Europe doesn’t drive the global economy. The United States does.

It’s true the United State’s economy is in a stall.  Despite all the data being thrown around by the Federal Reserve, government bureaucrats, Wall Street and its media syncopates to convince the investing public otherwise, the economy is not generating any productivity.

Why is that?

There is one primary reason. Our own government is the problem. 

For the past 60 years private industry has persevered despite government’s increasingly excretable policies.  Oppressive taxes, harsh tax enforcement, stifling regulation, and
increasingly the manipulation of the investment markets result from a growing corruption of political culture inside Washington, D.C. nearly out of control.  (Although it looks like a major political correction is possible this coming November.)

One can say with some confidence that the world may be a real crappy neighborhood, and the United States as the best house that everyone wants to live in.
Not so the European Union.

Its energy policy depends on Russia and costly so-called sustainable energy projects. With uncertain energy sources and rising energy pricing, its manufacturing and agricultural sectors are uncompetitive.

The European Union is trying to solve its need for additional labor immigration to have an expanding economy by allowing the mass migration of a workforce incompatible with is overall culture based on the underlying value system of Christendom.

Besides the historical divisions that have plagued Europe over the centuries, the European Union is now in a fight to save itself from becoming a vassal of a greater Islamic world.

Thomas Barnett, in his book "The Pentagon’s New Map," made the point of the delineating the countries part of the connected world versus the countries that should be thought of as unconnected. The Middle East countries, South America, North Africa and Sub-Sahara Africa he saw as being unconnected and a danger to the safety of the connected countries like those in North America and Europe.

Who could have seen that the European Union would follow a disastrous policy of encouraging the populace of the unconnected world to overrun it and support them while they do it?

The people of the United States are not buying into the effort by Washington, D.C., to sell out their cherished constitutional inheritance and the financial security it creates. Instead, to the shock of the Political Establishment, what can be a political revolution is taking place.

Unquestionably, there are investment opportunities all over the globe and new prospects arise every day.  People with investment capital will make their own decisions what level of risk they will take for what level of return.

It should be clear to investors and financial managers that thinking that the United States and the European Union are interchangeable for the investment environment and future financial security is nothing more than a fallacy.

The United States and the European Union are vastly different.

Denis Kleinfeld is known as a strategic tax and wealth protection lawyer, widely published author and creative teacher. To read more of his articles, CLICK HERE NOW.

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The investment gurus who rule the markets operate under the assumption that United States of America and Europe are the same.
united states, europe, government, invest
Monday, 13 June 2016 08:13 AM
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