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Strategies & Market Trends : The coming US dollar crisis
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To: dybdahl who wrote (4726)3/8/2008 12:20:02 PM
From: The Wharf  Read Replies (1) of 71412
 
We have an entire mature nation world that now holds an over extension of debt problem
US banking system concept is world wide
Gone are the days of the old Bundesbank
You can not get an inventory count today asset can change over night.

Interesting is the fact we mandate wages must go up while tech forces prices down.
Wages must go up is more or less forced by too easy credit.. Here you could apply at ninety for a thirty year mortgage loan.
Ease of loans leads to diminished dollar value on one end and a artificially increase of asset value on the other.
Possibility of a collision course is very real
Currency tinkering used by Japan did not help product sales as products are wage and commodity based.
Product quality put Japan back on her footing.

Here we must balloon currency to match the balloon we created in loans but I think it is a world balloon;
The crisis does not occur until the question of how the loans will be paid crops up.
You cannot inflate wages at the same speed as loans can be created as wages are competitive based and include different labor rates.
In world trade price of product keeps prices down.

Here cost control reduces the job market for lower cost labor yet we willingly increased the debt they own.

You can now buy a bookshelf for less money than a 1 pound pizza from our local pizzaria.

I fear this will happen here.
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