Mike / Others
As long as we are into coin flips, heres my take. Asia is in a recession. However, American goods are more expensive to them in spite of the lowered demand - Given the "devaluation" of their currencies, the only goods which would seem to "deflate" would be the ones locally produced or by currencies hit to a similar amount that theirs were.
Now go across the pond, much of what we buy is made overseas. If we take a devauation of our currency - ie somebody realizes that there sure are a lot of dollars out there and growing at a mighty rate with our FED's accomodating monetary policy. (Scarcely a day goes by without some announcement about reserves being increased) So if we were to experience a "equalizing" of the currency, most of our prices would go up. yes / no
I understand about us having too much capacity and not enough demand, but it seems that if we keep expanding the money supply, we will be able to fullfill all that capacity as we demand more by just selling part of our ever growing stock portfolios. Pretty soon, we will be able to show up at the internet in the morning, buy a few stocks, sell a few, and walk away with a days wages. <g>
appreciate your commentary |
