The coming US dollar crisis Message Board

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Strategies & Market Trends : The coming US dollar crisis

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To: maceng2 who wrote (23538)	10/16/2009 5:30:41 PM
From: Real Man	Read Replies (2) of 71475

Depends. If your costs go up more than your products, you are screwed even as the currency melts down. That's exactly what happened to GM and our other manufacturers since 2000. Soaring oil price, a number of wrong decisions, then a credit crisis bankrupted them. Primarily the cause of the bankruptcy was ... focussing on running a BANK ARM (GMAC) as opposed to a MANUFACTURING FACILITY. That bank arm generated all GM's profits, while manufacturing generated losses, since that stuff was encouraged by the fed. GE did the same, and so did other large co-s. Why? Cause. The government (The Fed, mostly) made running manufacturing biz unprofitable, so everyone was forced to adapt. Judging by record WS bonuses and the policies of last year, the Fed is doing it again. This time the manufacturing will be wiped out (a continuation of the long term trend of wrong policy making, really), and a currency with no real economy to support it is worth no more than a sign on it, $=0.

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