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


To: Archie Meeties who wrote (23282)12/15/2004 2:26:53 PM
From: Rarebird  Read Replies (1) | Respond to of 110194
 
<It doesn't seem advantageous for China/Japan to cause economic havoc in their primary market.>

In a sense, that's true. However, in reality, all contradictions resolve themselves. It is always reality which wins. In the case of the Bush administration, this resolution will most likely take place during the first half of next year, i.e. in 2005. The vast external money inflows into the US financial system have already peaked, as can be seen from the fall in the value of the USD.

The rest of the world has now formed a circle around the US and its Dollar. The rest of the world is now in the process of walking backwards away from the US Dollar. In the hole in the middle is a now unwanted US Dollar left more and more on its own.

While all this is already going on, the rest of the world is in the process of establishing ever more integrated and inter-connected monetary, financial, investment and trade connections all around the circle. The only nation which, due to the policy of its leadership, is increasingly disconnected from this economic, financial circle is the United States - and its currency - the US Dollar.