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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: quasar_1 who wrote (91)10/24/2000 11:09:54 AM
From: tradermike_1999  Read Replies (2) of 74559
 
Quasar - I also agree with your statements that deflation is a great problem. I believe that the "free trade" world economy has created global deflation. This is why Japan can't escape its recession. China and several other Asian nations also. The cheap labor costs overseas has led to lower labor costs and has decimated our industrial sector. That has a large part to do with why labor costs in the US have not been rising. HArd to tell at this point if it is just as important as productivity and technology or even more so. But it is a serious problem and why a collapse in the dollar could spark a sharp global crisis.
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