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

To: Jim McMannis who wrote (82819)	8/7/2008 12:15:53 PM
From: westpacific	Respond to of 116555

Lower Oil......we need folks to recycle dollars to buy our debt (treasuries), high oil leads to massive surpluses of money in oil producing nations and thus that money has to go somewhere...... They buy our debt. However if Oil tanks, they will need that money to fund their own problems and will not have a surplus. Very few Americans understand how much capital we need daily to keep 'this game alive'..... And a higher dollar, makes our exports too expensive to compete in the new global market. Also a higher dollar makes our debt grow, the lower the dollar, the less our debt. Lower dollar makes investing in America more attractive. It is all about attracting dollars (capital) to our shores - and man, do we need it right now! Yes, higher oil is negative for operation expenses, that is true, however it is only a small reason why lower Oil does not really help us near term. It is really not about dollars, but oil traded in dollars via the reserve system. Dollars and Oil, this is key. And the recycling of dollars. It is about to DIE. We are really up a creek with no paddle, so few understand what we face. As a nation we will rock, but first a price must be paid for the gross abuse of the system and its capital! W