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

To: mishedlo who wrote (70792)	11/1/2007 10:34:59 PM
From: Real Man	Read Replies (1) \| Respond to of 116555

Mish, the real story is that US is no longer the major global growth engine it used to be. Thus, don't expect a big drop for commodities as US growth slows due to the housing recession. Rather, expect the worst case scenario: commodities will continue to rally, the dollar will drop, inflation will go up. Eventually, interest rates will have to climb up despite the slowdown. The fall of the dollar that is starting to get out of hand. So, the Fed can't lower even if they really, really need to. Here is IMF report; a chart on the right indicates who contributes most to the global growth mindfully.org "Persistent, large global imbalances raise two principal concerns: - the possibility of a disorderly depreciation of the U.S. dollar, which could have severe repercussions throughout global financial markets. - sustained large trade imbalances, which could prompt rising protectionist pressures."