Asia Ascendent?

Jens F. Laurson & George A. Pieler talk about the economic crisis and point out that economics is not a zero sum game - and they believe Asia stands as the most likely to benefit from the retrenchment likely across the European and North American economic zones.

"Absent coercion, economic activity is by definition for mutual benefit, and the more people benefit, the greater the benefit. It works almost like a perpetuum mobile, except better. The more money and goods flow, the more wealth is created in the process. If economics were a car you might say: the faster you go, the more quickly your tank must fill."

As they correctly point out, the President-elect appears poised to declare winners and losers, with more regulation, higher taxes, and more protectionism. Such behaviors in the polical sphere are likely to extend the suffering. Higher taxes on capitla, energy, and interference in corporate decisonmaking through a European style industrial policy enforced through regulatory environmentla restricitons are in the offing.

Asia stands to benefit from its already lower production costs, less intrusive rgualtory environment (think India/South Korea/Taiwan more so than China) and rising domestic consumerism. Interesting parallel thoughts to those who have already declared the 21st century to inevitably be the Asian century. Of course, the US stands to benefit from its developing and increasingly close strategtic and trade partnership with India, and the new administration will eventually after either four or eight years, go the way all administrations go. It will be interesting to see how the centrists in the cabinet react to the stated policy proposals of our new chief executive.