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

To: KyrosL who wrote (89820)	12/22/2007 5:42:13 PM
From: GST	Read Replies (1) \| Respond to of 110194

<There is a handful of countries that are now consuming that excess supply> The hundreds of millions of people we are discussing are both consumers and producers -- you are assuming that they need us to consume. It turns out that they are very good at consuming -- it takes little talent, although it does take money -- or credit. Since they now have money and have not even scratched the surface with consumer credit, you can count on these same people to spend many decades "catching up" in their consumerism. And that is precisely what they are doing. They have trillions in savings and a thirst for consumerism. They have savings in a currency that goes up in value every day. They have wages that are going up each day. They need us less and less each day. But no need to worry about them anyway -- we don't produce much of anything anymore and even in a bad recession we will import tons and tons of stuff from outside the US come rain or shine. We are the ones going broke -- they are just coming into their own.

To: KyrosL who wrote (89820)	12/22/2007 6:32:38 PM
From: Proud Deplorable	Respond to of 110194

"The US is about to stop being the consumer of last resort for this excess supply. What happens then?" Other countries then move in and consume the excess supply in the US, enabled by a lower dollar. It's conceivable that even goods imported when the dollar was much higher could even be sold back to the suppliers or to others around the world for a much lower price. So I think consumer prices in the US are going to skyrocket as the dollar moves lower. Purchasing power for consumers will take a double hit, lower home prices and increased mortgage carrying costs while consumer staples rise. Out of control price inflation as there becomes too much money chasing not enough goods. Example. If I can now get a better deal on a shipload of merchandise from someone in the US who bought it from say, Taiwan, 3 years ago, than from the manufacturer whose prices and currency are now higher this is what I'd do so I would expect that the excess supply will start being eaten up if not already. One can always get better deals on large quantities (container loads) than J6P American consumer can so the result is increasing prices on previously landed imported goods and also domestically manufactured goods and foods. If everybody had an checkbook from outside the USA Then everybody'd be shopping in Californi-a You'd seem 'em bringing their tractor trailers to load up their containers too A cushy cushy hotel too while Shopping U. S. A. You'd catch 'em shopping on Rodeo Drive Ventura County line Santa Cruz and LaJolla New York's Fifth Avenue too and all over Manhattan And down Palm Beach way. Everybody's gone shopping Shopping U.S. A. They'll all be planning that route Their gonna take real soon...... get the idea? Everybody's gone shopping Shopping' U.S. A. youtube.com