The Epic American Credit and Bond Bubble Laboratory Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: philv who wrote (3692)	12/20/2003 9:45:27 PM
From: mishedlo	Read Replies (1) of 110194

How much longer can prices for finished goods remain depressed in face of massive recent increases in raw material price? Which way will it break? Either commodities will crash down or the finished product price must rise. I think it depends upon consumer demand. Make your own judgment. For a long time IMO. When wages in China are $1 per hour or whatever, we will keep losing jobs to them. As long as we can not afford to pay them they will keep prices low. If they hike, we stop buying. The party ends when China is capable of a self sustaining growth on its own accord and is no longer dependeant on the US. If someone raises prices NOW, no one will buy (not here). US consumers simply are at or extremely near the point of debt limits. How is raising prices going to help? It can't and prices will not be raised. The hole FN house of cards collapses in a huge deflationary crash here, the only question is timing. What happens in China is more subjhect to debate. It is clear IMO that the US is at the very pinacle, right now, of its economic and military power. There is nowhere to go but down. How quickly that plays out (and it may take a decade but China is patient), is anyones guess. Our standard of living falling is baked in stone. There is too much debt to inflate away given current job status that is NOT going to change, but ACCELERATE into more job losses. Every service that can possible be outsourced overseas will head there. Tech is well underway, call centers well underway, accountaing not really started yet. Whay do we need bookeeepers here. We do not. More jobs will be lost. It is already happening even in places like the medical field that people thought was untouchable. WE ship xrays via the internet overseas for evaluation by a doctor at far less prices than we pay our doctors here. Boom. Another job lost. Anything that can go will go. It is going to get butt ugly, and if housing goes it is game set match. That is another reason why interest rates will stay low. Hikes will kill housing. At some point it all goes to hell anyway cause JOBS are NOT coming back. That is the answer to this mess. Loss of jobs is hugely deflationary and job gains at McDonalds does not cut it. Deflation is GUARANTEED. M

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next