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Strategies & Market Trends : The coming US dollar crisis

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To: dybdahl who wrote (4328)2/16/2008 8:51:43 AM
From: Real Man  Read Replies (2) of 71456
 
"I strongly assume that USA will start to pay back debt 1-3
years after the next presidential election, and this will mean
more american products on the world market. This will improve
the world's perception of USA as a supplier of high quality
products, and make the dollar a more obvious choice."

With what manufacturing base? The effect of bubbles will take
time to reverse. Shut down factories won't reappear overnight.
Unfortunately, I can't say the process has
started, even though the US multinationals did report higher
earnings. Most of those were due to the drop of the buck. It
is really up to the Fed - the bubble economy must be destroyed.
Inflationary easy money policies fuel it.
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