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

To: shades who wrote (52710)	2/5/2006 11:50:03 AM
From: skinowski	Read Replies (2) \| Respond to of 110194

Mish was on C-span today? Missed it. Now, I remember that being mentioned somewhere... I live in a fog. I am not an economist - but even advanced professionals seem to fight like cats and dogs over these issues. There is no consensus, and, I suspect, no real understanding. I do know a couple of things - reasons to keep the USD as a reserve currency are varied - and there are many of them. New Asian tigers are on the roll, and they simply cannot afford to rock the boat. If the Dollar goes too low, and America cuts down on buying, they may face implosions, depressions, civil wars, etc. Not good. So, they have both economic and political reasons as to why the show must go on. Otoh, the fact of the matter is that we import things - and they accept in return (in the end) our bonds. The interest alone is becoming a major problem, and imo it's insane to think that this situation is sustainable. What can be done about it? This may sound terribly pessimistic, but there might be nothing that can be done. Bush wants more engineers -- but, for each new one of ours, there is literally a crowd of engineers being trained in other countries. A Flat Earth level playing field is not to our advantage at this time, when a couple of billion new players are in the process of joining the game. Optimism and faith in American ingenuity - and in our infinite ability to solve problems - are important parts of our culture, and up until now optimists were right..... and I hope they will continue to be right. However, past performance does not guarantee future results.