Wm, I take a different view on widening trade gap.1st of all: tis how we dispense all this extra money we've been printing. You see, the very definition of a reserve currency is one that is widely dispersed throughout the world from us paying for "their" goods/svcs in OUR currency, NOT THEIRS!
Furthermore, while I'm on the subject of US$ reserve currency status, we have to disperse a helluvalot more US$ prior to the obvious dilution represented by the Second Reserve Currency being currently determined by June 1, 98 and actually dispersed prior to Jan 1 99. After that, it will be EUs spreading far and wide and competing for "reserve currency" status in the puking-up-goods-and-svcs-Asian-economies.
Secondly, I'm looking forward to the fire sales on some goods, especially electronic that I've been putting off waiting for a better, more competitive pricing climate.
I've been anticipating a greater trade deficit. The fact that it is sooner than later tickles the hell outta me.
Third and finally since such irrational US$ dispersion is totally dilutive, it will break the back of the US$ rally, and gold should soar for a time between June 1 and Jan 1 if I'm reading this correctly.
Thx for your post. |
