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

To: GST who wrote (75557)	12/13/2006 5:40:45 PM
From: benwood	Read Replies (1) \| Respond to of 110194

GST, I agree those are huge issues. Historically, a vast current account deficit and/or gov't revenue gap have not resolved to the benefit of the debtor nation. I view it as a global tightrope walk, and it would be easy for the complacency and the recklessness of the US to cause the situation to resolve abruptly. Or an untimely gust of wind. That would be what I would consider to be a break in the dollar, and I agree that would send shock waves around the world, esp. here, and lead to wild fluctuations in prices (equities, merchandise, real estate, oil). The further stretched the US becomes, the more likely it is that an event like the Asian monetary crisis will develop, and make that one look like simply a demo of the real thing.