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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 378.35+2.7%Nov 10 4:00 PM EST

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To: TobagoJack who wrote (23011)9/25/2007 12:46:52 AM
From: elmatador  Read Replies (1) of 217661
 
What'll happen to globalized world once broader weakening of US consumer spending hits -with sales of autos and consumer durables such as appliances and furniture also falling- plus curbing of housing construction?

That's the ultimate question. We need to know the effects.

"Continued weakness of the U.S. dollar, recent cut in interest rates by the U.S. Federal Reserve is designed to lower the value of the U.S. dollar and boost U.S. exports while lowering imports. This would protect some American jobs at the expense of other countries"

RESULT:
1) Since there will be decoupling -no one goes and hibernate like bear because the US tanks- there will be a pull of US exports.
2) Exports from the US going up agriculturals can help since food prices are going up and the appetite keeps increasing.
3) Companies with a US based production will certainly profit from that
4) Repatriation of profits from US multinationals buys more depleted dollars with their appreciated currencies
5) Points to problem for Europe will feel the heat as US goods become cheaper vis a vis European ones.
6) Canada will need to adjust and export to the US and need to divert exports elsewhere
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