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Strategies & Market Trends : Currents of Currency -- Ignore unavailable to you. Want to Upgrade?

To: Ahda who wrote (111)	9/24/2008 1:55:14 PM
From: Ahda	Read Replies (1) \| Respond to of 594

I think US is headed for a financial crisis The proof is really very simple increase in currency exchange value means decrease in competitive product price ability in world market. That has to be offset by decrease in production cost. Yet inflation on a national base which is the result of numerical currency creation is needed to service debt, this adds to internal to product cost and cannot be offset by currency exchange as it is local. Aka why US people could not buy US products. BK and pennies pence or any other low currency value given to creditors in lieu of full payment does have a purpose. Decrease of debt allows said company to go back into operation. Increase of debt strangles as price cannot contract to be competitive. Increase in US debt in a known recession prone economic period plus increased pressure placed on asset to inflate to fictional value is a terrible combination.. The problem hers is the result that is close to Bk cannot be treated as said so you most assuredly will find the value of the US currency in an increasingly savvy world market will drop. This period will allow banks in other nations to get their house in order but that order is going to be more about national internal asset value. In my opinion it is now utterly impossible for the US to get it’s internal house in order and avoid a full blown recession.