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Strategies & Market Trends : Heinz Blasnik- Views You Can Use

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To: LLCF who wrote (3101)7/22/2003 11:41:56 AM
From: Box-By-The-Riviera™  Read Replies (2) of 4904
 
i know of at least one example, were the peg to be lifted, of an american company that would suffer greatly.. since they are making most of their top line products in china and doing business in dollars...

unpegging will have a deep impact well beyond china...right to the american corporate bottom line in many cases...

will they unpeg? what leverage does anyone have to force them? and when they do unpeg... in a year, two years, three years? ... well, whole new ball of wax by then, no?

same ball however, just more wax <g>

the basics of inflation are the basics are they not, in this particular situation? anything that squeezes out another dime from an already unaffordable lifestyle (all borrowed).. and anything that devalues what wealth may still be left (equity)...

well, there's a good arguement for the inflationists...

and everything around it is deflating...

two points for the deflationists....

and here we are.. stuck in the middle between the two....
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