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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 (78512)	2/5/2007 5:32:51 PM
From: SouthFloridaGuy	Read Replies (1) \| Respond to of 110194

Honestly I don't care about the current account deficit. I don't think people understand what the current account deficit really is. The current account deficit between the US and Asia is about as important as the current account deficit between New York and Texas. We don't "borrow" capital to fund our fat consumer lifestyle. Foreigners fund our capital account due to above average growth opportunities. It's quite simple. There is ABSOLUTELY no correlation between current account deficits and the following: GDP, productivity, inflation, currency, stock market returns. If there were Japan would be the richest, fastest growing country in the world...oh yes, and the Yen would be the strongest currency. If have absolutely no problem with Asians selling us cheap goods and buying our bonds in exchange. Lastly, if people have some fallacious notion about people "dumping" dollar assets, I have a simple question. Where will they go? Why Gold, of course, it's that simple. And Gold will hit $10,000 oz. NOT! If you don't believe any of the above, don't get me started on the very relevant subject of Dark Matter.