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That's the paradox of economics, current world crisis nations have monetary
devaluations
and economic depressions so their exports should be cheap for the American
consumers,
and yet will be looking at higher prices? Actually even with currency
devaluation,
consumer prices had a hard increasing in us here, because each and every person
rich
or poor alike is feeling poor (might be mental) and not spending much, so the
retailers
can't raise prices (or they will get very low business turnover)as dictated by
the market forces. As long as old inventory/stocks is still there, prices
can't/won't be going up.
There are many consumer items that went up, for example like Kleenex, after a
few months, they were forced to come down as fewer people are buying at the new
high prices. Reporting Live from the Asian Crisis Zone!!
Yes, agree worldwide printing of money by governments is the current short term
solution
to pump up the engine to make more money circulate.. Why? Because money really
disappeared right before our eyes in the case of my country. For example one of
my friends has an office building, before 1997 it was worth 12 million dollars,
these days its value is less than 6 million, but with devaluation its less than
4 million, so, for him it really disappeared, can't get bigger loan from banks
to turn over his businesses. So he has to look at higher costs loans with lesser
collaterals, and bad business conditions (sales) , right now he got a triple
whammy going on!!
West Germany again (historically speaking)will be the wild card at this game! Am
watching their moves Yep, gold might have an important place at this stage , be
ready for the volatility!!!Also hope the Arabs andother oil producing nations
don't get smart and take advantage of the current situation.
Clint Chastain wrote:
> Of course, an interest rate cut will have at least a short term beneficial
> effect on our equity markets. And, of course, the decision(s) to cut
> interest rates were not influenced in the slightest by the proximity of
> upcoming elections. Of course not :)
>
> Nevertheless, my simple mind finds itself concerned that the Fed may simply
> be postponing - and perhaps exacerbating - the inevitable. If I understand.
> If so, then foreign goods will become relatively more expensive in the US. It
> seems to me that this would only make it even more difficult for Japan and
> certain other countries to claw their way back to economic health. And that's
> where the whole problem began!
>
> The only hope then lies with a coordinated international rate cut, right?
> But what's the odds that Germany and Japan will follow suit. The effect
> interest rate in Japan is already something like 0.5%.
>
> Maybe time to start accumulating Gold?
>
> Clint
>
> -
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