Hi Ron, periods of excess have to end with either war or bear market. As we are unlikely to go to war with Japan (economic war that is -over "them" attempting to crawl out of the crisis at "our" expense, bear market is a more likely scenario with bonds/dollar crushing, as the currency is repatriated back to Japan/Korea and market panics.
With regards to history, IMO we are in a brief period of world domination by one stable economically and politically superpower operating and it's currency $$$. (China has not emerged yet, but already economic development of the world is predicated on China filling vacuum, as USA declines)
Gold, wheat, rice, oil, (pepper in anxient Greece/Egypt) all behaved similarly and globally. No demand-no production, and so on along supply and demand lines. |
