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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Mike McFarland who wrote (1926)	3/13/2004 12:22:05 AM
From: mishedlo	Read Replies (2) \| Respond to of 116555

Individuals will service their debt by simply reducing consumption. Five years from now, you are not going to see people turning in their five year old vehicles for new. Reduce consumption is right because they will not have a job! Now..... Continue forward with the "reduce consumption" idea whether or NOT they have a job. Reduced consumption = economic slowdown. Think recession. We hiking into a recession with plunging jobs, and plunging market, and plunging consumption? I think not! As for Japan: We have talked about this before. Japan is looking to keep consumers he buying. They want a weaker YEN so they sell it and buy $. Europe threatened to do the same thing and Japoan got pissed. Seriously. Whydid they get pissed? Cause thay want a lower Yen compared to the Euro so they can keep selling us cars and other junk. Europe is pissed that they have born the brunt of the US$ decline. Canada has cut twice now because of the high loonie. I expect Europe to cut as they head for a recession. I guess those ideas should tie most of it all together. Mish