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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 411.49+0.6%Jan 8 4:00 PM EST
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To: KyrosL who wrote (21567)8/24/2007 2:01:32 AM
From: elmatador  Read Replies (2) of 219165
 
How injections of capital preempts TJ’s collapse. Take the 200 billion dollars capital injection in the global economy via remittances. It cannot disappear from one day to another.

You need to see waht it does:
The guy in Macedonia supports his older parents. They keep house in good conditions to pass to son working in Germany when they die. They improve quality of live, because the guy bought, new refrigerator, TV and is injecting that part into the Macedonian economy paying medical bills and drugs for the elderly that is part of the local economy too.

The same applies for the money that goes to LATAM. That money creates a snowball effect and it helps the LATAM economy as a whole. It can be said that the national US economy, say 10 year hence, will be worse off due to this remittance effect but -in a global economy perspective- that is compensated by the economic growth elsewhere in LATAM.

This injection of capital will result in a decoupling. That is, the economies of the periphery grow while the adverse effects are felt on the European and US economies.

What an individual American to do? He chooses a proxy for that economic growth and uses it to cash in on that growth as Seeker of the Truth is doing with ITU in Brazil.
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