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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (11049)	11/4/2006 4:16:36 AM
From: energyplay	Read Replies (1) \| Respond to of 218633

Meaning we will get a Brazil bubble - really - Brazil doesn't import oil, so that's not a drain, high ratio of productive citizens to retired, and many sectors in the Brazilian economy are expanding, with either export or domestic markets or both - agriculture, minerals, steel, aircraft, autos - lots of big employment sectors. As capital moves in and more jobs are created, Brazilian workers become more productive, increasing the domestic market, and stimulating the movement of more capital to service that market. The process feeds on itself with multiple positive feedbacks. Biggest negative feedback is currency appreciation, which would tend to make many exports less competitive. So Brazil will need to by USD, Euros, RMB, etc. to hold down the Real. As foreign exchange reserves expand, the Real has less risk, so interest rates should drop...

To: elmatador who wrote (11049)	11/4/2006 2:18:01 PM
From: Rolla Coasta	Respond to of 218633

China/Japan central banks won't give up USD, since US is still a technological advanced nation. US productivity is among the best in the world. That's the creditworth US has been, when compared to other rogue states. Work hard when you have debt, cuz there's nothing worse than 2001 as there's no over-investment in particular sector. IF gold becomes more and more expensive, more people will dig for gold until they realize the price is crashing. That's not productivity in any industrialization. It is a maniac for the substances not technically useful. We need housing for population grow which support our productivity. Gold never does that ! The game of debt financing must go on to generate productivity. And we don't want any interruption at this moment. Only non-productive financial sales person would trade gold for good.