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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 (48441)	12/30/2005 11:08:37 AM
From: bond_bubble	Read Replies (1) \| Respond to of 110194

GST, US will have difficulty producing goods for foreigners at prices they can afford!! Why? The maladjustments have increased the salary of CEO, CFO, VPs etc so high, nobody wants to be anyone other than these management!! The college education cost has inflated so high, a grad coming out can NOT afford to be an engineer, professor, technician - ONLY a management profession can pay back that education loans!!! So, there is no way, going forward, US can produce anything for the rest of the world to buy. It can only be the other way as Doug Noland's last week article mentioned a 1730 article about currency inflation!!! Also, Raw materials (especially low cost powder basin coal has tripled in 18 months and likely to quadruple in Q1!!) will only increase the PPI further!!! The only way I see going forward is: 1) Nationalize education - so that engineers can afford to study and work as engineer, technician, artist etc. 2) Nationalize healthcare - so that companies have less employee burden and less cost. 3) And more government programs!!! In other words, US is becoming more like a communist country and China is becoming little bit like a socialistic country. Both of them are not Capitalistic country. So both will suffer horribly!!

To: mishedlo who wrote (48441)	12/30/2005 11:52:32 AM
From: GST	Read Replies (1) \| Respond to of 110194

Adding a couple of billion people in Chindia to the consumer society is hardly going to be deflationary -- quite the opposite, it is inflationary. You ignore it, but the price of everything from gas to steel is impacted by the surging demand outside the US. This will not only continue but will pick up speed. Wage differences will narrow, as they already have begun to do, and it will come down to who is better, not who is cheaper. If our uneducated spoiled brat society thinks that it is going to whine its way into some sort of illiterate real estate heaven, then heaven help them. I leave for India in a few minutes -- happy new year.