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Strategies & Market Trends : Commodities - The Coming Bull Market

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To: craig crawford who wrote (1084)3/13/2002 6:56:00 PM
From: maceng2  Read Replies (2) of 1643
 
Hi Craig,

I was in agreement with most of what you said until this...

what does the united states manufacturing 42% of the world's manufactures have to do with the great depression?

Well... When the USA gets a slight chill, the rest of the world gets pneumonia. It's a well known effect even in the UK... When England gets a chill, Scotland gets pneumonia.

So, if most of your wealth is generated by exporting, and a downturn occurs, satellite countries get hit harder, so exports get hit bad. The downturn is then reinforced.

Those who know non linear systems know full well that a 1 percent impact can create 50 percent changes. Markets historically follow this behavior to a close degree.
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