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

To: elmatador who wrote (77923)	4/18/2008 12:24:18 PM
From: koan	Read Replies (1) \| Respond to of 116555

el matadore: "Our free-trade policies would raise productivity and living standards if we paid for what we buy abroad with exports, because exporting industries use labor more productively and spend more on research and development. Message 24509265 ELMAT: Owning the world's reserve currency gave no incentive to export to buy goods and services. This is about to turn. Therefore price of land will keep going up as the US needs to go to the country side to export agricultural products. However, governments in China, Japan and much of Asia intervene in foreign exchange markets to keep their currencies artificially cheap and US exports too expensive in rich markets with the greatest untapped opportunities. ELMAT: Do not blame them. They are just reacting to the US policies. Exporting themselves out of poverty by grabbing all the USD they could get. " koan: I feel that is a very good post I agree with in th emain. The one caveate no one speaks about is the inherent imbalance of what the US consumes versus other nations i.e. 5% of population consuming 25% of worlds wealth. That worked when everyone else was working for slave labor in colonies. But now the world is in the process of bringing economic equality to the world which means our standard of living must fall. One concept never discussed is that there is simply not enough commodities in the world for everyone to be a millionair, or even live the way we are living now with our huge gas guzzlers,etc and throw away economy.