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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 375.93-1.8%Nov 14 4:00 PM EST

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To: TobagoJack who wrote (7019)6/7/2006 3:39:42 AM
From: energyplay  Read Replies (1) of 217767
 
That's a very good point - how much real physical business (meaning not paper asset games) depends on super liquidity.

I think there is a wide band available between cooling down the asset bubble and pushing into a hard recession, in MOST countries.

The band should be widest in the resource countries, and developing countries with resources, like Brazil and Russia.

The band is likely to be narrow in the US, but could be fixed by a lower USD making imports more expensive, so domestic manufacturers, cars especially, can gain market share and unit volume.

It seems the other way to handle this problem is to switch from one side of the band to the other quickly, while applying various fiscal policy band aids and subsidies. This also confuses most people, so when things come out even half way right, they then conclude your are a genius. (See Alan Greenspan)

The US is still a large importer and exporter, and changes there can make a big difference in the US economy.
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