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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding

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To: Fiscally Conservative who wrote (13692)8/19/2025 11:57:21 PM
From: elmatador   of 13769
 
Learn about Lost Decades and get prepared. We might be on the cusp of a Lost Decade. Maybe we are already on it since 2020 COVID debacle. Lost Decades are recognized to have happened only after the data is shown. But if you have been through a couple of them, you know how to recognize all its hallmarks of one.

People tend to see Lost Decades from a certain perspective. They point to a Japan's Lost Decade. They point to the Great Depression of the 1930s. But I have experienced the Lost Decades of the 1980s first hand. You didn’t hear about a Lost decade kicking off -or even when it had started- because the people causing were not going to tell you. For example, when Paul Volcker in the early 80s hiked interest rates to double digits after the inflation caused by the second Oil Shock of 1979 and the high inflation post-Vietnam War, no one was pointed that this would cause a developing countries debt crisis. Basically, it was, we are solving our problems, you deal with the spill overs. And the spill overs were bad.

A new Lost Decade is now going to be a developing country affair. It will affect other countries. It is important to note what triggers a Lost Decade is always capital pulled out of economies.

Look closely and you see. The US needs any dollar it can lay its hands on. The trigger of the coming Lost Decade is not going to be the sudden pull of capital from developing countries for that requires high interest rates in the developed countries and they can’t afford it.

The need for dollars means the US will pull dollars from any country, allies or no allies. Rich or poor.

I will be writing a few posts on the subject.
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