Hi elmatador, <<when the world will run out of countries with lousy economic policies>> Not to worry, because there are always brand new lousy policies still to be invented. In any case, deflation, deflation and more deflation, until all is infected with the bug.
For a regional example, Japan just decided to protect its salt industry from Chinese import competition. Silicons, salts, electrons, what's the difference. And so, the Shanghai mag-lev train will be sourced from Germany, and if successful, the new Beijing-Hong Kong mag-lev train. Trains, cars, machine tools, what's the difference.
Competitive devaluation is only held back by the streength of the USD, our last line of defense.
Malaysia is actually doing OK, and thus it sets a bad precedent for other potential capital flight controllers.
Taiwan is the place I am watching ... capital gush is still picking up pace, split between US and China. An unofficial strategic alliance between US and China against Japan should be able to squeeze quite a bit of capital from that country too, benefiting all others, including unofficial alliance partners <g>.
No need to open trade doors, station troops or anything, except to turn up the volume of CNN.
BTW, I think the economic world is really screwed up, with no balance, logic or laws still functioning.
Chugs, Jay |
