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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: William H Huebl who wrote (76088)	7/22/2007 9:39:54 AM
From: Real Man	Read Replies (1) \| Respond to of 94695

Well, the good thing is that the dollar is cheap on the PPP basis, and the trade deficit is, in fact, finally improving, a lot better than last year. The only currencies that are way undervalued are the Asian currencies. I am not so sure about the Euro. Maybe, it will need to fall some as well. If consumption slows down, I expect the trade deficit could improve a lot, and oil price would fall. But I have no clue if they can disarm the bomb, still ticking, and so far the ticking got louder. The idea was to devalue the dollar gradually, so that imbalances take care of themselves. I'd think some long recession/slow growth period like Japan for 20 years, but nothing like the Great Depression. Foreign economies are stronger than US, so maybe we can export to them and ride out the weakness for a while -g-