Hi Snowshoe, <<Americans will now reduce consumption and increase savings for retirement>>
This would seem a wise and prudent course of action, after the epilogue of the Script, and before the next abracadabra.
<<American products will be more competitive under the cheaper dollar>>
Yes, but not before the rest of the Script that you seemed to have fast-forwarded and thus skipped:
(a) Grindingly competitive and repeated devaluation, as each nation-state try to out do the other in lowering own currency, assured of success with each turn, in line, sequence and turn, again, to wash away the sin of socialism in Europe, the crime of banking in Japan, the felony of collapsing empire of Russia, the transgression of collective ownership in China, the indiscretion of bubble in the US, and the imprudence of bacchanal debt carnival of Latin America;
(b) The whole world is becoming cheaper as well, by day after awful day, tick by downward tick;
(c) Even as the whole world is, in fact, in the majority, becoming more acceptable, relative to each nation-state, as all are revealed now, in gory detail, to be about the same, and not much different; and
(d) Abracadabra may be epi-centered elsewhere the next time around, especially if it involves dose-dependent market place, and minimum regulation dependent incubation (food biotech?).
I believe we are in uncharted landscape, and anything can happen from this time point onward. I advise caution in making plans based on old assumptions taken from outdated maps, because we have a plain sheet of paper for a map.
<<rest of you folks around the world will just have to step up to the plate and consume more stuff!>>
As the US FED and Japan BOJ have artificially depressed our collective passive income, by lowering the short term secured rates, even as they failed to encourage longer term unsecured returns on capital, we, everywhere, are spending less, as we do not see where the next bit of wealth will come from, as the Script plays, especially because <<Americans will now reduce consumption and increase savings for retirement>> ... and then, presumably, retire, just not our Euro, Yen, Yuan, or even Dollar.
The debt-ly dark interim is deadly.
Chugs, Jay |
