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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: TobagoJack who wrote (86410)1/26/2012 1:21:49 AM
From: elmatador  Respond to of 220364
 
Rebalancing not allowed to proceed. Left to market forces emerging markets pricing and wages would converge towards developed countries' levels.

Rich countries currencies would devalue vis a vis emerging markets' currencies.
That would proceed until the balance was achieved reaching a point when currencies of emerging markets would become convertible.
Rich countries' economies would restart to GDP growth again.

That is not happening:
Countries do not allow their currencies to go down.
Economies artificially propped up by QEs
Banks not allowed to fail and kept going.