Ole 49r-- We are now in a world of competitive devaluations (economic war), which may lead to the next steps, which are
collapse of trade, depression, and ultimately, war, if history repeats.
Asia looks like the world of the early 1930's.
Up to now we have only seen a financial devaluation, signifying a rush to dump those markets. This will most likely lead to an economic
depression that S.E. Asia cannot export it's way out of.
So, from this I expect massive dumping of cheap products on the US market, and the inability of the US to export to collapsing Asian markets. This will lead to another increase in trade inbalances, which, ultimately must lead to a weaker dollar, which is the only way the
pog can advance to the upside, and which will most likely cause the collapse of US equity markets. |
