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

To: pogohere who wrote (88035)	10/28/2007 1:17:47 PM
From: TimbaBear	Read Replies (1) \| Respond to of 110194

Does this wipeout of what is essentially the middle class have a bearing on the price level? If consumption is 70% of the economy and the middle class has no boodle/credit and can't consume, what happens to prices? If all of the merchandise consumed here was made here, then prices would go down. However, with most goods made elsewhere and the value of the USD being headed sharply down, the currency curve will overpower the demand curve and prices will continue to escalate. At least that has been my read for several years now and it seems to be unfolding as if that read were somewhat accurate.