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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Crimson Ghost who wrote (5344)	1/17/2004 11:59:40 PM
From: BEEF JERKEY	Respond to of 110194

The writer has illuminated an remarkable aspect of recent world trade. The US has been able to abuse Asia by virtue of the fact that the US buck is the de-facto world currency. Most remarkable is these nations that already hold so many increasing worthless US bucks are now forced to buy even more in an insane attempt to keep their massive dollar holdings "worth something". Most insane is that they are also doing this so they can continue the privilege of exchanging hard goods for increasingly worthless dollars. I suppose the Chinese feel that with the peg they can suck some of the life out of the US economy for themselves but it sure looks like they are getting screwed especially with the devaluation of the dollar. I suspect that after all is said and done Asia will really be left holding the bag when the US manages to inflate its way out of debt or if that is not possible simply reneges at the point of a gun. Hey it really pays to be the most powerful nation on earth, its way better to be an American, - but some of the peasants seem to be rumbling.

To: Crimson Ghost who wrote (5344)	1/18/2004 1:00:53 AM
From: Siddhartha Gautama	Read Replies (1) \| Respond to of 110194

the trends and macro picture identified by the writer appear reasonable. but the numerical values he uses appear out of whack. 1. US$30 to produce (in China) and US$400 or US$500 sale price (in USA) for Reebok? Isn't it more like $3 and $40/$50 ? 2. 40% of 600 trillion dollars = 240 trillion is USA's debt burden? doesn't quite square with the 7 trillion treasury debt( publicdebt.treas.gov, 6.4 trillion MZM (http://research.stlouisfed.org/fred2/series/WMZMNS/), 17 trillion US bond market cap (http://pluto.mscc.huji.ac.il/~mswiener/teaching/FIEMBAF02/WorldBondMarket.pdf), etc. so, what really will be the price of a 10 cents match box when the global financial system reaches equilibrium?