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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding
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robert b furman
To: robert b furman who wrote (11414)7/22/2023 8:09:59 AM
From: elmatador1 Recommendation   of 13775
 
Hi Bob.

Always good to read your opinions.

An economic model, works, but the set of circumstances change and the model stops working.

Those who created the model, and prospered under it, want it to last forever. But nothing is forever.

China could not move beyond its Stalinist economic model: Throw capital, labor and materials (steel, oil, concrete) at the economy. It is a miracle it had not failed before.

The EU created a model of expanding members, post-Berlin Wall collapse, while using cheap but educated Eastern European manpower. It worked as long as the new members spent to modernize.

But reached a point that there weren't new members to add and the cheap but educated Eastern European manpower got old.(Eastern Europe demographics is terrible).

Within the EU, Germany had its own spiel. Created a triangle: Germany - Russia - China to prosper.

Germany Technology - Russia materials and Oil&Gas - China manufacturing
Then Ukraine happened.

The US made a lot of money with the exportation of industry to China. Could print with abandon because the world economy could absorb all it was being printed. No Inflation as China produced cheaper for the US consumer to import.

This is the scenario as I see it unwinding today. How this construction is going to be resolved, time will tell.
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