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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Box-By-The-Riviera™ who wrote (5673)	7/6/2001 10:33:01 PM
From: TobagoJack	Read Replies (2) \| Respond to of 74559

Hi Joel, Imagine a world where the purchasing power of all currencies are deliberately or not-of-policy choice racing for the downside, via deflation of manufactured goods due to … (1) over capacity, (2) emerging global manufacturing bases in low labor cost countries (China, India, Korea, and do not forget Russia, and deflating Japan, at least relative to US), (3) lack of demand due to lowered income and wealth of developed countries due to the bad side of globalization, and (4) debt-blowup induced worldwide synchronous recession. Now imagine the same world simultaneously flooded with one dominating fiat currency in a futile effort to stem the tide of deflation caused by above mentioned factors, while at the same time that the fiat currency is not treated properly with respect by the squanderers of capital, such as telcos, FNMs, private debtors, Argentina, USA. Now, overlay the above world with an equalization of wealth driven by technology cycle compression, globalization, reform, restructuring, victory of capitalism over communism, and garnish such a world with dwindling oil reserves, and massive short positions in specie by central banks, hedge funds, miners, … The trouble with a world dominated by one belief system and one economic gene pool is that such a world may not have the necessary diversity to weather the meteor strike. Welcome to the final chapter of New Ec. Well, so much for scaring ourselves on this fine weekend. Let’s get on to another book fast. Chugs, Jay