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

To: Real Man who wrote (18158)	3/4/2009 6:08:06 PM
From: Hawkmoon	1 Recommendation Read Replies (1) \| Respond to of 71474

Japan kept growing and growing and growing... until it outgrew US. So did South Korea. They grew through exports, the majority of which were to the US. We occupied, stabilized, and developed those countries due to our presence and desire to make them strong allies and tied to our sphere of influence. But that's not the case with China, nor with most other developing countries. And with the exception of India, most are either authoritarian, or fledgling democracies (theftocracies?) And btw, not sure what you mean by "outgrew" but Japan has NEVER outgrown the US in real terms (but yes, with regard to percentage as currently in China).. It would have been impossible since they relied upon our growth to fuel their economies. You also provided a great example with Turkmenistan. A good portion of the developing countries are just a stone's throw from returning to such a condition. Lord knows what's going to happen in Poland and Ukraine as their currencies crash and their debt burden to the West increases. The Russians would love to bring them back under their influence, or at least subvert our own. Look around Vi.. Europe has a HUGE problem with emerging market debt in E. Europe. Something like $4.9 TRILLION in Swiss Franc denominated debt was issued to those emerging markets and they can't pay it back. Poland having the Zloty cut in HALF is like someone having their wages cut in half and expected to service the same debt. It's just not going to happen and that will only make their currencies weaker. It's going to require debt restructuring and FORGIVENESS (default). This is not the kind of place people inject more capital, especially with fear of inflation devaluing their profits. Hawk