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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: skinowski who wrote (88072)10/28/2007 12:25:54 AM
From: GST  Read Replies (1) of 110194
 
What is missed is this: Wealthy Chinese will be the primary beneficiaries of "cheap" newly mobilized labor in the Chinese cities as they hire more drivers, cooks, nannies and housecleaners, etc. As the dollar continues its slide, "made in China" will no longer mean dirt cheap any more than "made in Japan" meant dirt cheap in the 1980s. The days when we could import enough deflation to balance our out of balance system are behind us now. We basked in the glow of cheap oil, cheap labor, and cheap credit. We pulled money out of dollars and turned our houses into bank accounts, making wthdrawls to pay our bills. The days of cheap labor, oil and credit ended -- and our houses are like empty piggy banks with a very bad hangover of debt. All of this shows up ultimately in one place -- the dollar. As the economy slows the dollar falls -- and as the dollar falls the stage is set for a generation of inflation and lowered expectations for the American economy -- or at least for most Americans. Those of us who can make a fortune in a global environment will shine on, even if we have to post armed guards at the entrance to our houses -- and those who have no way to compete will see their families grow poorer. We have suffered under misguided monetary policy, misguided fiscal policy, misguided defense policy and misguided education policy. We have been gleefully bankrupting ourselves -- trading a better future for a fast thrill. Now the thrill is gone.

It reminds me of an old song -- "there's a hole in daddy's arm where all the money went, Jesus Christ died for nothing, I regret."
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