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The world from dude's prospective. US politics, science and the environment, sports (mostly my beloved saints), and other worldy matters. After all, the dude abides....

Friday, November 26, 2004

Economic Armageddon?

That is what Stephen Roach, the chief economist at investment banking giant Morgan Stanley, is predicting. The article about his findings and presentations is grim to say the least. I know that it is becoming clear as of late to most of us that the US economy is losing ground in an ever more alarming rate as time goes on. But this guys economic forecast is plain ugly. He states the clear observation that we are stuck in a record trade deficit with no sign of being able to dig ourselves out. He observes that in order to dig ourselves out of debt with the rest of the world, America must import 2.6 billion dollars......A DAY! According to the article that is 80% of the worlds net savings. What does it mean for you and me? Well, first off it means that inflation is going to go through the roof under this scenario, and the writing on the wall is already starting to point in that direction. Intrest rates and lending institutions are the most at risk. Folks, the debt bubble might burst sooner than we think. One thing is for sure, the US dollar is taking a nosedive worldwide, and it might leave an economic disaster in its wake.......They do point out a solution, which would be to let the dollar slump and letting rising inflation rates whittle away at Americans debt by falling currency values. Is that the best we can do? I hope not.......

Link: BostonHerald.com

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