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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Gary Mohilner who wrote (9264)	6/26/2008 10:27:36 PM
From: ggersh	Respond to of 71405

Gary I for appreciate your thoughtfulness. Now, if only our politicians would do the same......

To: Gary Mohilner who wrote (9264)	6/27/2008 12:09:08 AM
From: Real Man	Read Replies (2) \| Respond to of 71405

Gary, you are right, of course. By shifting production overseas, where it's cheaper, US companies shoot themselves in the foot, since Americans without associated high salaries in the manufacturing sector can't consume. Where are Intel's facilities? Malaysia? Well, NOW we've got a crisis, since Americans can't consume anymore, and so these companies that shifted production overseas (globalization) can't sell their products here. This trend is obviously unsustainable in the long run, but it was sustained artificially by extensive creation of debt and asset bubbles in the USA. The current account deficit WILL drop, but not because of increased US manufacturing (for now). Rather, drastically decreased consumption. Manufacturing will come back eventually, but similar to the shifts of production overseas, it's a gradual process. They will have to do it.