By way of Follow Me Here, the chief economist at Morgan Stanley warns private audiences that, in his opinion, the US is headed for economic “Armageddon.” “In a nutshell, Roach’s argument is that America’s record trade deficit means the dollar will keep falling. To keep foreigners buying T-bills and prevent a resulting rise in inflation, Federal Reserve Chairman Alan Greenspan will be forced to raise interest rates further and faster than he wants. The result: U.S. consumers, who are in debt up to their eyeballs, will get pounded.”
3 thoughts on “The Teddy Bears’ Picnic.”
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As I humped my rowing single down to the dock just before hunting season I overheard a conversation of some fisherman putting in their boat. They were talking about a friend who was in trouble financially with his credit card gone wild, $40,000 Truck $15,000 Bass boat and a wife
spending like crazy. The solution is obvious, he cannot go about life the old way he is forced by necessity to make life changes. Our government will have to do the same. What will it look like when that happens? Will financial Armageddon
force the change or will we act sooner?
Instead of once a week , now you hear about the declining dollar once a day..
http://www.turkishpress.com/business/news.asp?id=041126163652.fvwm2jow.xml
soon once an hour?
At some point in the not-too-distant future, the torch will have to be passed: some other country or region will take on the role of “motor” of the world economy.
And why? The root cause will not be taxes or interest rates, or even jobs… but the inevitable development that the American population shrinks and grows older.
Demographics, folks. No one escapes demographics. (What are we gonna DO with all those retired Boomers?)
-A.R.Yngve
http://yngve.bravehost.com