Tuesday, August 28, 2007


Back in the 1990's when NAFTA was passed, the fear was that relatively low capital and wage intensive industries such as textiles and furniture would move out of the USA. That fear has been realized, but YOU AIN'T SEEN NOTHING YET! Yesterday, aluminum stocks in China surged 10% when it was announced that China expects to become an aluminum importer. There is not a lot of aluminum used in the manufacturing of socks or furniture.

Investors should keep in mind that this is good news not bad. It means that more and more goods are going to be produced at lower prices. The goods produced at low costs might include everything from autos to airplanes.

This is good news for the people of the USA. An US union auto worker can stop dreaming that his son will one day get a job on the assembly line. There is honor in all work but no need to spend ones life screwing fenders on cars. Machines can do that for us.

Yesterday, it was also announced that mice were healed with cell injections into their damaged hearts. The world of manufacturing is changing. More than enough goods are being produced. The price of manufactured goods is coming down. When the cost of living go down, people always find something else to buy. In the coming years, larger and larger sums will be spent on health care. Those of us who have already reached the age of 55 should expect to live to be 95. Those of you who are 35 should expect to live to be 105.

There is a connection between aluminum imports to China and a long and healthy life. Times are good. Investors should invest for the long term because most investors have more long term to live than they even realize. BUY, BUY, BUY!