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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED

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To: Selectric II who wrote (25210)12/14/2000 11:31:48 PM
From: Jim Willie CB  Read Replies (2) of 65232
 
I sometimes believe a nasty thought about The Greenman

that Greensnooze views Asian economies as expendable

American money center banks have almost zero exposure in Asia
OPEC also has zero debt to American banks

once the US economy overheats, or inflation is seen as a threat (even if a ghost threat), we slow our economy, bring the rest of the world to a screeching halt, thus reducing the cost of all kinds of commodities, from crude oil to semiconductors to rice to TVsets to auto parts to camcorders to CDplayers to clothing

gotta keep down the cost of our massive imports
the biggest threat of inflation comes NOT from our domestic labor, but from foreign imports

foreign economies are not as strong as ours
take them down as we approach recession ourselves
we dont go into recession because we are so damned strong, but they do because they arent as solid or broad
their prices come down, and we import lower prices
on to the next cycle, free from inflation

the only smart comment I ever heard from dunce Barton Biggs
"as foreign economies experience deep recession, our supply costs drop, hitting the sweet spot of our economy"

/ JW
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