Word: abbouds
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
Excited by the oil prospects that he saw in China, he foresees a three-way trade between capitalists and Communists. In Abboud's view, the U.S. will sell oil equipment to Peking. Then the Chinese will ship oil to Japan. Completing the deal, the Japanese will continue to send their cars, cameras and appliances to the U.S. Result: the U.S. will pay for its Japanese imports by selling drilling gear to China-and there will be oil for the lamps of Japan...
What troubles Abboud now is that U.S. capitalism is not getting enough new capital. "There is a tremendous disinvestment in the economy," he says. The number of shareholders has shrunk so drastically that Wall Street's plum has become a prune. Americans are spending instead of investing, figuring as do Latin Americans that it is better to buy now because the price of everything is going to be higher tomorrow. "In consequence," adds Abboud, "big firms like A T & T can get capital, but small companies have a hard time. So the basic job-producing engine is drying...
...Abboud argues, must do three things...
First, reduce the growth of Government spending on consumption-oriented programs, which are using up so much capital. In Abboud's metaphor, "the Government is like, the big elephant coming to the pond, drinking all the water, leaving the gazelles with nothing...
...this were a political platform, any prudent banker would deny a loan to finance Abboud's campaign. Yet he speaks some hard truths. Unless the geometric growth of some popular and politically "uncontrollable" programs is controlled-Abboud mentions Social Security and veterans benefits-then much deeper deficits lie ahead. Until the Government eases some regulations, managers will spend capital to meet those rules instead of to create jobs. Buying up dollars will not permanently lift America's currency but at least will give the U.S. time to ease the trade and budget deficits that are dragging the dollar...