<How soon?>
I don't know Sidney when the exact day will come and honestly I don't care. I wouldn't even waste a second of my life trying to figure out when that day will come. I don't have time in my life to be a market timer. I'm positioned accordingly here in Israel and that's all that matters to me. I'll let the few remaining day trading bimbos on SI determine when that day will come.
Financially, at present, the USA has NO underpinnings, not when it requires the annual inflow of $US 1.35 TRILLION from outside to fund its current account deficit with the rest of the world and its federal budget deficit which is now on track to reach $US 800 Billion over the next US financial year. The blunt fact is that the US can stand in its current global posture but only for as long as that same $US 1.35 TRILLION keeps flowing annually into the US financial system and, from there, into the US economy.
THAT FLOW IS NOW EBBING! In September, foreign investors reportedly sold a net $US 6.3 Billion in US stocks, after having been buyers of a net $US 11.5 Billion in August. Where US Treasuries are concerned, net new foreign purchases of US Treasuries dropped to $US 5.6 Billion in September after having come in at $US 25.1 Billion in August. The USA simply cannot handle this.
Economically, the USA with its latest capital plant utilization rate at a drastically low 75%, is in a position where ONE in FOUR industrial plants stands either idle or closed. The USA now produces 45% of the consumer goods which it consumes. This combination of under production and over consumption, given any lessening (let alone drying up) of the pace of foreign imports, would mean a certain crash in US living standards of monumental proportions.
There are huge, dramatic, dangerous, and even exciting times straight ahead. |
