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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 398.95+0.1%Dec 30 4:00 PM EST

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To: Haim R. Branisteanu who wrote (91837)6/24/2012 4:27:23 PM
From: elmatador  Read Replies (1) of 218847
 
Germany knows the model is exhausted. Knows the PIGS only chance to pay what they owe is through severe hardship. A hardship the populaces aren't willing to stomach.

An economy based on transformation industry was possible because 2.5 billion people (USSR, China and India plus indebted emerging markets) were off the global economy. They could import cheap inputs to transform and export.

Once these 2.5 billion became active, the transformation cum exports model of the EZ was no longer tenable. Why? Because the emerging markets are now gobbling the inputs EZ used to import.

Same can be applied to Middle East and North Africa. Their imports got too expansive. Their populaces revolted against entrenched governing elites.
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