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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: X Y Zebra who wrote (16596)	12/14/2002 12:01:19 AM
From: Lizzie Tudor	Read Replies (2) \| Respond to of 57110

XYZ... great post!! You know, I hate to go down this rabbit hole because I am no economist... of course I have opinions like anyone but no real formal education or experience so just a disclaimer I could be totally offbase as I am with many things... <gg> However... the other side of the coin is, if all this manufacturing jobs go elsewhere, what will happen to employment and wages here? not a happy answer I am sure. Will this bring other evils (in stead of inflation)? and what effects will they have? Totally agreed not a pretty picture. Labor value in US as compared against 3rd world... effectively zero. But one thing I think people agree on... protectionism/unions are NOT the answer to this problem. Bottom line is US must compete on a world stage and if that means outsourcing virtually every piece of manual labor to china, so be it. The pain is better than the loss of an entire industry we learned that with autos. The unemployed laborers will migrate to the service economy which is not as highly paid. Price of gold went nuts in the late 70's early 80's because of the oil embargo and the consequences that came with it... the skyrocketing in the price of gold was not an isolated event. There was a massive loss of confidence in the US dollar due to the inflation created by the price of oil --and the outlook at that time that OPEC created for industrialized economies. So demand for gold simply ran-over its supply... (and it was not sustained, we know what happened afterwards) Will it happen again? Agreed again... I don't think the crisis in te dollar is quite as likely now with the US as one global superpower. Also (and I cannot prove this) I believe the last gold spike to the $800s still had remnants of the old gold standard alive in it... the gold standard was over of course but there was still a sense at least by some that this was some sort of currency replacement in the fed sense. Thats jmo. This is not to say gold can't rally from even these levels but I can't see 800s again, really. Lizzie