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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (61082)	12/27/2006 1:46:15 AM
From: bart13	Respond to of 116555

Global Savings Glut Revisited Hot damn, great one! <g> Nothing like telling it like it is. I sure hope Ben Stein has the courage and fortitude to take him up on it.

To: mishedlo who wrote (61082)	12/27/2006 7:52:46 AM
From: John McCarthy	Respond to of 116555

Mish that has got to be one of the best explanations (articles) I have ever read .... thanks for posting that regards, John McCarthy

To: mishedlo who wrote (61082)	12/27/2006 8:51:23 AM
From: KyrosL	Read Replies (2) \| Respond to of 116555

Hi mish. John Succo's refutation of excess savings makes no sense. He writes: It is not the excess savings of Chinese investors that are buying U.S. securities. It is central banks creating credit themselves to buy those securities. The reason foreign central banks create credit in the local currency is to mop up dollars earned by their trade surpluses. They then use these dollars to buy US securities. It is precisely those excess savings that generate the trade surpluses. That's economics 101.