The debate between Peter Thiel and Eric Schmidt is summarized over at Marginal Revolution. Alex’s conclusion is that Google’s cash hording is the best evidence there is for The Great Stagnation. I see it as more as evidence that Google has no faith in the stability of the global economy–it’s best to hoard cash if you think the deluge is almost upon us….
Money quote:
PETER THIEL: …Google is a great company. It has 30,000 people, or 20,000, whatever the number is. They have pretty safe jobs. On the other hand, Google also has 30, 40, 50 billion in cash. It has no idea how to invest that money in technology effectively. So, it prefers getting zero percent interest from Mr. Bernanke, effectively the cash sort of gets burned away over time through inflation, because there are no ideas that Google has how to spend money.
Discoverers and Discoveries 