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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: TobagoJack who wrote (7177)8/16/2001 6:39:38 PM
From: Hawkmoon  Read Replies (1) of 74559
 
Understood Jay... However, the kind of subsidization that has been imparted to the US has been financial (where else are these exporters going to put their USD?)

But the US consumer has been subsidizing their manufacturing sectors. We don't buy, they can't sell.
And if the dollar goes down, US goods become more competitive against the goods they've been importing here.

But of course, those items that we have ceased producing here will inflate in price as our dollars decrease. But I'm not worried about this growing too significantly.

I just don't see where those off-shore investors are going to park their money (except in gold) and expect any safety, liquidity, and transparency.

I still believe if the US economy continues to lag, then we'll see the rest of the world lag even more. And this is simply because they are less willing to take the necessary actions that will boost their own domestic spending, and reduce labor costs.

So more pain may be in store for everyone.. But I still believe the US will suffer less than other economies.

Btw, good to chat with you again. I've been pretty busy as of late.

Hawk
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