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

To: carranza2 who wrote (25833)	12/22/2009 1:18:55 PM
From: Real Man	1 Recommendation Respond to of 71442

I think so, but it took all of them combined and the Fed's tightening dance to cause this bounce. If inflating, stimulus, and ZIRP provide only a temporary life support to what is clinically overleveraged and overindebted economy, then ZIRP will stay and the dollar bounce will end. I expect that to happen - err, the US economic growth will be tepid at best. In other words, the Keynesian effort to get Americans to get even into more debt and spend will fail, they will continue their recent saving and frugality thing until the current account deficit reverses. This and ZIRP tend to make a currency weak, not strong.

To: carranza2 who wrote (25833)	12/22/2009 2:05:23 PM
From: GST	3 Recommendations Read Replies (1) \| Respond to of 71442

<I am concerned about the Chinese economy> China is a hard economy to grasp. Unless you spend a significant amount of time in China there is a tendency to reduce China to a cartoon character and then discuss China in abstract unreal terms. Very few of us can really grasp the pace and scope of change that has now been going on for several decades and portends to continue to do so for decades to come. Any Chinese person who went into a coma in 1980 and woke up today would find the place unrecognizable. The numbers in China sound wacky because by comparison the pace and scope of change in the US is slow and painful -- and in a deteriorating direction. While China faces no end of major problems and challenges, it would be a mistake to assume that breakneck growth and the reshaping of a society that dwarfs our own cannot endure simply because it is beyond our imagination.