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

To: GraceZ who wrote (78116)	1/25/2007 12:12:18 PM
From: Broken_Clock	Read Replies (1) \| Respond to of 110194

As for Americans not producing something tangible, the US trades off the number one position with Germany as being the world's largest exporter of goods. ============ Yes, but more and more lumber mills are shutting down, indicating the world's appetite for $USD is rapidly diminishing. -g-

To: GraceZ who wrote (78116)	1/25/2007 1:26:46 PM
From: Mike Johnston	Respond to of 110194

I didn't say that deficits do not matter, don't put words in my mouth I was the one that said deficits do not matter, because if Asians were not financing those deficits, the dollar would decline to such a degree that they would disappear. If Asians want to buy our bonds in exchange for goods, let them have it. I thought you agreed with this ? What i did not agree with you about is that you said that deficits are small in comparison with asset growth. To which i responded that deficits are not small and recently huge asset growth has been purely due to inflation. Those deficits are a huge transfer of wealth out of the country and not just that, some of that "wealth" is just debt taken out against collateral that had inflationary appreciation. So in itself, wealth transfers out of the country are bad but this is worse, because some of that wealth is simply debt backed by fictional wealth. -