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

To: pogohere who wrote (53910)	2/15/2006 2:07:05 PM
From: GST	Read Replies (1) \| Respond to of 110194

There is no doubt in my mind that the US Fed now sees itself as central banker to the world. I would rather see countries such as China as part of the modern world than as social, economic and political backwaters where people stay busy making weapons, except to note that their entry into the modern world and the global economy has some truly terrible side-effects and we don't seem equipped to handle them. One thing I know is that people in China (and elsewhere) have money and they are starting to spend it. Fortunately for them they also have savings, and they are adding to their savings as well. We on the other hand have crawled way, way out on a limb, and the farther out we climb, the more we feel compelled to say "see, this is working out just fine, the branch has not broken yet". But the branch is creaking and it most likely will break. What then? Unfortunately, what happens then looks set to be a very serious spike in US poverty and overall stagflation. The rest of the world will attempt to insulate themselves from our economic disease -- perhaps with greater success than we anticipate.