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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 375.96-1.8%Nov 14 4:00 PM EST

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To: Box-By-The-Riviera™ who wrote (56882)10/25/2009 9:36:00 AM
From: elmatador  Read Replies (1) of 217825
 
Because expensive stuff is hard to sell (barred luxury goods sector) one need to make a lot of said stuff and still turn a profit.

In Asia everyone wants to become a producer. Once they over build and over produce they struggle to go abroad because you cannot turn a profit on home market only.

They deplete prices worldwide.

Once they deplete prices worldwide, their consumers' base vanishes because they are not earning a salary to buy the stuff they are selling even if it is a very low price.

Consumer vanishes because they can no longer be competitive producing anything. They close down. Their industry consolidate. They make effort to get more effecinet and more productive, meaning they employ even less people on what remains operating.

What we need is to have economists explaining how this can be fine tuned so that it is possible to make money. Because evetything will stop once no one will no longer be making any money.
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