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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (104760)	9/2/2009 3:23:54 AM
From: Elroy Jetson	5 Recommendations Read Replies (1) \| Respond to of 110194

Sadly unemployment comes as a result of excessive debt. Since 1980 consumer and business debt has rapidly increased. This resulted in 29 years of false demand. The money was not spent on infrastructure or other wealth building assets. Instead almost all of this false demand was spent on opulent consumption. This false demand in turn created false jobs. An economy living beyond it's means can only avoid inflation by turning to imports. So accordingly many of the jobs created by the false demand of ever increasing debt levels were created in other nations, China in particular. China lent many Americans the money to live beyond their means, and much of this money was spent in China. And to think, some people wonder what was driving America's Current Account deficit! But now, consumers and businesses can no longer afford to take on more debt, so the drunken party comes to a sudden end. Demand will quickly decline to the real footprint of our actual income. Increased government spending will mask this decline in the economy over the short-term, but longer term Americans must shrink to match their actual income. The result is many jobs created to supply this false debt-driven demand will be lost - and many of those job losses will occur in China. .