On Mar 8, 1:35=A0am, Straydog <arthu...@[EMAIL PROTECTED]
> wrote:
> For all the bad-mouthing of USD by BPOking (king of BS) and other anti-
> US Indians, I would suggest that what you guys should watch for is a
> swing of money OUT of =A0Euros, Yen, and gold (and oil futures) in 6-12
> months. All the money is going into those markets which are, right
As the US dollar declines in value (mostly due to mismanagement) it
makes ex****ts from America more competitive. The first signs of this
will be a rise in bulk grain ****pments. That will indicate a price
level has been reached at which ex****ts from the US are competitive
relative to other countries. Hopefully that happens before the
consumer class collapses in the US and the economy dives into an
inflationary recession.
As there is nothing fundamentally wrong with the economy other than
reckless overspending, this is likely to happen. This is not on
account of any brilliant plan by the US government. It just is the
only way out of the financial mess.
Instead of raising interest rates to attract capital, the US is trying
to cheapen the cost of assets in the US to make it attractive to
foreign buyers (aka investors). It hopes that by doing this, people
will stop dumping dollars and instead invest it in the US.
Oil will not decline significantly as OPEC is testing the ability of
the market to withstand its new benchmark of $100 per barrel.
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