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

To: axial who wrote (20036)	4/27/2009 3:22:39 PM
From: GST	3 Recommendations Read Replies (1) \| Respond to of 71455

Optimism is great -- I have spent a great deal of time in China over the last fifteen years and I have seen first hand what is possible -- although the price tag in environmental terms is staggering. But to compare the US and China is sheer folly -- you could not find two countries whose current situation is more different. We are not China -- China has a savings rate that by some accounts is as high as 45%. China has a massive current account surplus. And much of its success has been due to dramatic changes in educational levels, urbanization and the sheer mass scale mobilization of underutilized resources - and of course all of the above has been down with an eye towards gaining superpower status both in economic and eventually political and military terms. We have a chance at a better future -- I have not given up quite yet. But for now the die is cast for us - we will endure at least a decade of economic spasms, social dislocations and rampant inflation. That is the legacy we have earned. The issue is whether or not we are capable of escaping these trends over the longer haul -- say in the 10 to 20 year time frame. That largely depends on what we do now. We have a chance, but it will take a decade to know if we are up to the challenge. In the mean time -- stagflation is ours to endure.