Emerging market growth isn’t just higher than the U.S., it’s better

Not only did the economies of emerging markets post much higher growth than the United States last year, but that growth is from producing goods and services. This is why ETFs such as Vanguard MSCI Emerging Markets (VWO, quote) and iShares MSCI BRIC Index (BKF, quote) are rising, and will continue to do so.

Projections of 2012’s economic growth aren’t any more favorable to America. China is expected to see 8.25% growth. India, 7%. Latin America, 3.7%.

The United States economy? 3%, and that’s with all the goosing Ben Bernanke’s accounting tricks can give it.

Bloomberg claims that Bernanke is too much of a pessimist, and that an improving job market, stepped-up bank lending and resurgent financial markets will fuel U.S. economic growth. Our economy may well look better at the end of the year than it did the last few, but that’s not much of an achievement.

As long as emerging market countries will grow based on fundamental economic development, and we grow based on inflating our money supply, their securities will be much better investments than those of the United States. 

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