Nobody misses these jobs. Unfortunately, the US economy is
now only 20% manufacturing economy, 80% service. This means
that 80% of jobs are white collar jobs. I think that's pretty
good overall, to have that. But... How would you beat 5%
trade deficit, with 20% of the economy? Naturally, it becomes
25% of the manufacturing part, a horrible number. So, if the
dollar declined 30%, and it did nothing to cure this deficit,
how much should the dollar decline to get the trade deficit to
become a trade surplus? Worse yet, as the real decline starts,
how much cummulative trade surplus is required to balance
cummulative trade deficit in the ballpark of 3 Trillion
dollars? And why did we have low inflation for so long,
with the Fed printing like crazy?
The answer is, 2/3 of the printed cash is outside the US.
As it was, and still is, getting outside the US, we get
low inflation. When it comes back, we'll get hyperinflation.
What is required to keep the Asians buying it? Hmm...
I don't know. But pissing them off is not a good solution,
I think. |
