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

To: TobagoJack who wrote (38531)	9/21/2003 12:29:39 AM
From: philv	Read Replies (1) \| Respond to of 74559

Jay, there is a great structural imbalance, which has been building for years with the apparent knowledge & support from the highest officials. Containment through Globalization is official policy, and Globalization means goods freely traded between countries. The US can not compete cost-wise, now to the tune of $500 billion dollars/year and rising. Can't compete against cheap Asian manufacturing or even high priced German goods. Seems to me there aren't any quick or easy fixes. The US could try tariffs, but that would destroy Globalization and invite retaliation. The best solution is to "print money", thereby causing a decline in the dollar. Hey, that is what they are doing. But they have to be careful to manage the decline slowly so that it is hardly noticeable inorder to maintain the status as the reserve currency of the world. So, they keep printing while Japan and others keep buying. The damn thing doesn't want to come down!! But down it must go. Either way, it looks like a big decline in US standard of living is inevitable.