Mish's Global Economic Trend Analysis 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 : Mish's Global Economic Trend Analysis

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: gregor_us who wrote (19888)	12/30/2004 11:00:48 AM
From: John Vosilla	Read Replies (4) of 116555

<Even if domestic demand in the US cranks hard in the midst of a severe economic downturn, it does seem prudent to continually ask what happens should the "float" of US Treasuries suddenly expand. It seems nearly impossible that in a housing led downturn that the USD would linger for long, before heading lower. That creates pressure.> You make some excellent points. The purchasers of all our debt will have their own problems as well causing some cashing out of US treasuries. Is it true something like 85-90% of all excess savings worldwide today goes towards the ballooning US deficits? In the stagflationary 70's we had slow growth, trade and budget imbalances, skyrocketing commodity prices and rising interest rates. Big differences this time are the huge debt levels of the US consumer and much more overvalued assets from record monetary and fiscal stimulus. The offset is the corporate sector has a much more stronger balance sheet now but will that be enough to make up for the negatives?

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next