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

To: microhoogle! who wrote (16635)	11/23/2004 12:22:44 PM
From: Knighty Tin	Read Replies (1) \| Respond to of 116555

Yahoogle, What you say is correct, but there is a dark cloud to each of the silver linings you quote. 1. Housing equity declining is what will cause the bubble to burst. With many folks at or above equity on their loans, any decline will lead to a housing depression. 2. If we made anything, our exports would increase. But we shuffle papers and play financial three card monte, both of which we are already exporting at pretty close to a max rate. We have nearly zero investment in mfg., so if there is demand for our exports, there won't be any supply. 3. Much of the debt is variable, so it will increase rates to kill us. Also, like every Ponzi scheme, we require increasing amounts of savings from other countries to fund our debt, and that will be curtailed unless we raise our rates to represent the risk in holding our confetti currency. 4. What we are talking about here is the long term economic goal of every Republican administration: to lower the living standard of the average American. They want to create a huge gap between their wealthy base and the great unwashed. So, I think a revaluation of the Yuan will be the death knoll for the American economy. It will still exist, but as a nation we will be on our way to mediocre and then to third world.