Comments on Nothing ventured, nothing gained: Shorts and Longs (Cont'd)

let me rephgrase my analogy: The fat man may make...

2007-01-24T18:18:00.000-05:00

let me rephgrase my analogy:

The fat man may make 5X more things than the next man, but he has to eat 4X more than the next man to properly survive.

I think all of this is true but we have to remembe...

2007-01-24T18:15:00.000-05:00

I think all of this is true but we have to remember that the GDP doesn't take in consideration the value of our debt and future promises made to other countries. Most banks would value the money of a certain country based on their trade & futures debt. It is like a very fat man. He may eat 5X more than the next man, but in order for him to survive he must east 4X the next man. He might only buy

I agree with a lot of the arguments that you make ...

2006-10-18T04:40:00.000-04:00

I agree with a lot of the arguments that you make Jeremy, but I'm long America because I think that we're strongest at the most important part of the value chain -- making successful businesses out of technological advancements. Our advantage in this area is due to several factors, chief among them management education.
America, without a doubt, leads the world in this area. I agree that

The relative size of an economy is only one part o...

2006-09-30T09:38:00.000-04:00

The relative size of an economy is only one part of the story. I think productivity among the largest economies is a more important metric because it is an indicator of prosperity. Perhaps lookng at per capita GDP or measures of competitiveness and total factor productivity would make more sense. I think we'd find that the U.S. is close to or at the top.

Justin,With all due respect, I am afraid I wasn't ...

2006-09-28T01:03:00.000-04:00

Justin,

With all due respect, I am afraid I wasn't confused. Albeit far from perfect, PPP-adjusted GDP is the appropriate way to measure the relative size of economies. In order to calculate the world GDP, one should bring the numbers from different countries to the appropriate common denominator. It is especially problematic in case of countries like China, where the official

I cannot comment on Brooks' sources. However, I b...

2006-09-27T17:41:00.000-04:00

I cannot comment on Brooks' sources. However, I believe I can shed light on a common point of confusion reflected in Rick's comment. Rick cites the CIA Fact Book in stating that the US produces 20% of global GDP whereas China produces 15%. However, these statistics reflect GDP Purchasing Power Parity (PPP), that is, the size of each economy adjusted for standards of living. Clearly, 1 US$

Rick, thanks for the comment and for providing the...

2006-09-27T10:30:00.000-04:00

Rick, thanks for the comment and for providing the sources which appear to dispute David Brooks' version of the facts. Generally, I hold the NY Times in high regard. Of course every journalist is bound to screw up now and then, and even the Times has been subjected to journalistic scandal, but David Brooks has built his reputation over 20 years working for publications including the Wall Street

You know, Jeremy, you shouldn't take David Brooks ...

2006-09-27T04:36:00.000-04:00

You know, Jeremy, you shouldn't take David Brooks very seriously. He's not a very good researcher, really:

US is about 20% of the world's GDP, roughly equal to the share of the European Union. China is about 15%.

Here's the source: https://www.cia.gov/cia/publications/factbook/rankorder/2001rank.html

Here you can find the numbers for R&D expenditures per country.