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

To: mishedlo who wrote (6169)	1/26/2004 12:17:09 PM
From: BEEF JERKEY	Read Replies (2) \| Respond to of 110194

You’ve misunderstood my point. I'm not saying current economic policy by the US will not end badly with an overall lessening of the standard of living in the US. I think that, especially with globalisation, that’s a high probability bet. To a certain extent I’m saying that US may have “peaked” “standard of living wise” over the last ten years or so. Still globalisation is complex and there is more to a standard of living than just an exchange rate or trade between nations unequal in power. Building codes, school systems, military strength and healthcare quality all contribute to the likelihood that the US will remain a first world nation. Try travelling on a typical highway in most of Asia (or any of the third world for that matter) and you realize how far they have to come to join our first world status. However if one looks at what has occurred over the last few years I do think I'm right, that the US has come out ahead with it's relationship with Asia. Over the last many years the US standard of living has been boosted with all the cheap Asian gadgets that would be unaffordable if produced in North America. High quality durable goods (cars, heavy equipment etc.) have also come to North America at attractive prices. In turn the US has paid in US $$$ that have an increasingly dubious future. Already oil, anything European produced, gold is all costing more and would cost way more if Asia tried to spend all its US dollar holdings instead of re-circulating them. Further if the US is willing to invade other countries in it's own flimsily disguised self interest then how much foreign ownership on it's own soil would it seriously tolerate before putting it to a end? The Asians are between a rock and a hard place with their massive dollar holdings. Eventually inflation combined with a weak dollar exchange will render those holdings virtually worthless whereas you will still see Americans driving around in Toyotas.