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

To: carranza2 who wrote (16980)	1/30/2009 12:40:53 AM
From: Real Man	4 Recommendations Read Replies (1) \| Respond to of 71446

I am not educated in economics at all, but so are most gold bugs. I am educated in science, though. All I can say is that self-educated folks in my field, which is rather sophisticated, are complete nuts. They try to reinvent the wheel from the 19-th century and typically come up with a square shape. -g- So, perhaps, my conclusion is that economics is best left to the specialists who know it well. It is a scientific field, and I am sure much has been learned in the past 100 years, and a few Nobel Prizes given. To assume that "they" are not aware of the problems we are facing is false. What I am trying to say is that while a lot of what the bugs are saying is true, a self-educated nut like Paul (he is probably an excellent physician), who also thinks he knows how things should be done in economics, would most likely be a disaster for the economy of this country, since he would not listen to what his more knowledgeable colleagues would say. Most gold bugs are nuts. They have been storing canned food for 30 years now <g> You say, what about AG, who ruined this country? Well, he was an Austrian economist by education and a self-centered criminal, cause he KNEW what he was doing and that it will ruin this country in the long run! Just a long rant, and IMHO. Americans protest the huge stimulus, but I guess that's what must be done at this point to soften the blow. And, I don't know if I am right or not, but it wasn't just the banking cartel that started the criminal Federal Reserve in 1913 - Central banks appeared in every industrialized country between 1880 and 1920. Perhaps, they are here to stay <G>

To: carranza2 who wrote (16980)	1/30/2009 6:48:26 AM
From: Real Man	3 Recommendations Read Replies (1) \| Respond to of 71446

At the core of this crisis is, perhaps, the first ill attempt of globalization. The internet revolution intensified the transfer of capital (which can flow freely) to cheap labor (India and China). The authorities tried to shoot down the imbalances by lowering the dollar, but these attempts were unsuccessful. Our country had to live off credit as real salaries shrank (competing with cheap labor in these countries). It is quite obvious the system was destined for a collapse - you just can't shrink people's salaries and expect them to keep consuming! Yet, capital will keep flowing to where the cheap labor is, as the World borders are quite transparent now. Our GDP is tied to China, since we mark up the Chinese products 10:1. So, as China falls, so do we, and vice versa! The solution? Darn, I wish I knew! It will emerge from this global crisis. My understanding is that the state of eventual equilibrium requires lower standard of living in the industrialized world and higher in the developing world. Yup, that's what this free cross-border flow of capital is doing. There will be unsuccessful attempts to stop it.