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Non-Tech : The Brazil Board -- Ignore unavailable to you. Want to Upgrade?


To: Arran Yuan who wrote (1613)7/21/2016 5:14:17 AM
From: THE ANT  Read Replies (2) | Respond to of 2504
 
Maybe crash was the wrong word. China economy will have a financial crises based on over lending which will result in a currency fall and a deflationary wave will wash over the world. This will not likely be good for the commodity exporters. World wide corporate defaults is another deflationary wave waiting to hit our shores. There are not enough dollars in a world economy based on dollars and high private debt is preventing new dollars from coming on line. The US must deficit spend to create these dollars.--gold will rise. If gold goes down we are not printing enough dollars to oil the world economy.Yes, US deficit spending, on the right things, at this moment is almost free money. Look at it this way, capitalism and the integration of China and the developing world into the world economy has created massive over capacity which needs dollars to oil. Why have a severe recession to get rid of this capacity? No WW !!! needed. Just print money by spending on US infrastructure. You see this money from printing is not really free but prepaid from prior hard work and capitalism. Just add dollars and capacity falls, gold rises, dollars rush out into the world economy and interest rates gradually rise. If gold falls we are not printing enough to prevent a deflationary recession