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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (36452)	7/2/2008 9:33:37 AM
From: carranza2	Read Replies (2) \| Respond to of 217571

something will break, Undoubtedly. It's very simple: A reserve currency cannot keep going down in relation to other currencies while offering interest rates at less than inflation, especially if the reserve currency is held in mega-positions by other countries. There is a tremendous benefit to being a reserve currency - you get to pay your debts using your own currency. But in order to maintain its status, it must remain stable. Otherwise there is no incentive for others to accept its reserve status. Very simple, not rocket science.

To: TobagoJack who wrote (36452)	7/2/2008 9:50:05 AM
From: elmatador	Respond to of 217571

Emerging markets will add. Not subtract. The scale of emerging markets is so huge, that is not possible to play the limitation game the OECD played for in the past 60 years. We must understand that Anglo-Saxon mindset is: SCARCITY based. The more scarce the better. Their problems seems to be to adapt to a world where there is plenty, and/or plenty has to be created. Thing an Austrian looking to mountains, no horizon, no space. Think Scotsmen with a sunless cloud land. Think Germans looking to barren limited land and lack of resources. This is the mindset that pervades economics. The problem is not here. It is inside the heads of the Anglo-Saxon men. Those guys can think only in terms of hogging and accummulating.

To: TobagoJack who wrote (36452)	7/2/2008 3:03:53 PM
From: abuelita	Read Replies (1) \| Respond to of 217571

(i) any attack on iran i'm thinking this is a solid bet - not just a trip wire. -rose

To: TobagoJack who wrote (36452)	7/2/2008 9:53:58 PM
From: THE ANT	Respond to of 217571

Even before I saw your answer I chose a,c,d.The US was worried about being able to go from a war economy to consumption and infrastructure based economy after WWII and it turned out to be a breeze.China has run a war based economy to maximize growth,and will adapt as needed.I do not feel USA will need to worry about energy security or price.Oil will fall in most other currencies and at worst stabilize in US $.We also have been very wasteful and can make great improvements in energy use(with a gun at our head)I think we would inflate our way out if we could but looks like Mish may be right(no can do)