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Strategies & Market Trends : Mish's Global Economic Trend Analysis
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To: GST who wrote (34156)7/25/2005 2:01:40 PM
From: Tommaso  Read Replies (2) of 116555
 
>>> do uou really think global demand can be sustained if the cash registers in the US fall silent?<<<

I am not ashamed to admit that I have no idea what can or will happen. If the Chinese can get the oil and other raw materials they need, and can pay for them, perhaps they might start manufacturing things for their home market. There are about five times as many Chinese as Americans, and surely there are things that they would like to own. I wonder how many Chinese have a refrigerator or a washing machine? But they have to get the steel, the copper for the windings in the electric motors, and the energy to run the factories as well as those machines themselves. There might be considerable pain in switching from export to domestic goods production.
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