A few years ago, I wondered if everyone simply had too much stuff. You, know, it felt like everyone had all the gadgets and I wondered where demand would come from.
Obviously that's an elementary way of thinking about things but sometimes simple is better than complicated. In any event, I still wonder if we have too much stuff and if one day we wake up and nobody needs anything.
It's never going to happen I guess because even when our wages aren't keeping up with inflation and we are dipping into savings, Americans will spend money. As consumers, we've carried the world on our backs (our back pockets and pocketbooks) for decades but at some point there will be a transition if we are not careful.
In fact many norms such as our AAA credit rating and Mexican-born immigrants leaving the United States are two things nobody ever imagined possible just a couple years ago.
The same driver is responsible for both. The economy is too sloppy to build the necessary reserves to pay for all the promises and mountain of borrowed money. The allure of the American Dream is being abandoned by Americans so its understandable foreigners will give up on it, too.
Illegal immigrants are hesitant, especially when they have to sneak in, face deportation and even jail time just for a chance to join the American Dream. It's not unlike the great migration of animals in the Serengeti that happens in July at the Grumati River in Tanzania and September at the Mara River in Kenya. These animals are in search of food and water.
Waiting for them is an assortment of beasts like lions, hyena and crocodiles. Of the up to 2.0 million wildebeest that make the journey, a quarter of a million do not make it.
Illegal Mexican immigrants, or as the Pew Center Research piece described them, "unauthorized," are going back home. In 2011 there were 7.1 million unauthorized Mexican immigrants and last year, the number dropped to 6.1 million.
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for July 23rd, 2014 | John Ransom
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for July 22nd, 2014 | John Ransom