Where is the US economy headed?

Basic cost of nutrient minus any fannying about.

They'll do away with the tables and chairs next and just pour it all onto the floor. You'll lick it clean if you are hungry enough.

The cost of coffee and donut like that could probably be driven down to 2 cents.

London is obviously the in place if you're not a low bred failure. But no further that Watford if you don't mind.

Waterford, you say!

Finally, here is a definition of globalization




I can understand and to which



I can relate











Question: What is the truest definition of Globalization?













Answer: Princess





Diana's death.













Question: How come?













Answer:







An English princess with







an Egyptian boyfriend







crashes in a French







tunnel, driving a







German car







with a Dutch engine,







driven by a Belgian







who was drunk







on Scottish whisky,







(check the bottle before you change the spelling),







followed closely by







Italian Paparazzi,







on Japanese motorcycles;







treated by an American doctor, using







Brazilian medicines.










This is sent to you by







a Canadian,







using Bill Gate's technology,







and you're probably reading this on your computer,







that uses Taiwanese







chips, and a







Korean monitor,







assembled by







Bangladeshi workers







in a Singapore plant,







transported by Indian







lorry-drivers,







hijacked by Indonesians,







unloaded by Sicilian longshoremen,







and trucked to you by Mexican illegals.....























That, my friends, is Globalization!

:wink: :wink:

A nice post Au.
Thanks

Globalization--- Next Is Glocalizsation.

Back to the main subject of this thread.


Economists aren't sure a falling dollar will help improve the trade deficit. They argue that the two major components of the trade deficit - oil and imports from China - are not really affected by the dollar gyrations. In July, the two areas represented 80 percent of America's trade imbalance.
"If you can't adjust imports of oil, and most are priced in dollars, and you can't adjust currencies against Chinese yuan, which is pegged to the dollar, depreciating the dollar does not get you where you want to go," says Peter Morici, an economics professor at the University of Maryland's business school.
http://www.csmonitor.com/2007/0924/p01s05-usec.html?page=2


because putting U.S. Dollars under your mattress will surely have a disastrous effect. With the U.S. Dollar on the verge of a total collapse investors will awaken one day to discover their 'nest egg' has disappeared.
Everyday I am amazed by the comments of some of my American friends. These are very intelligent guys and have for the most part quite a lot of money (U.S. Dollars) invested in the financial markets. They do not have a clue as to what I do in life nor do they have a clue as to what is happening in the financial world with the U.S. Dollar, the subprime mortgage issues, the Yen carrytrade and the potential meltdown of our financial system within the coming days, weeks and months. If these savvy guys 'don't get it' then I have to conclude that most Americans 'don't get it'.
The greatest impact in the near future will probably be felt the hardest by the U.S. investors with a declining U.S. Dollar and a declining stock market and they just don't get it. They think the problem is over, after all the stock market as measured by the Dow Jones Industrial Average is only about 5% off of its all-time high. What problems, what crisis, why worry, the FED is here to bail us out.
Speaking about the FED, have you been following all of the news about Alan Greenspan over the last 48 hours or so? He is now talking to everyone in English that we can understand not all of the double talk for which he was the master for so many years. Why has he chosen to speak out now just hours before the FED will announce their decision on interest rates in the United States? Of course, he is promoting his new book, but is there another reason? Perhaps, Greenspan is speaking out now in an attempt (we stress attempt) to distance himself from the coming meltdown in the financial markets. Does he know what's coming? Does he fear another sharp 1987 style collapse in the U.S. markets? We will know the answers http://www.safehaven.com/article-8441.htm
With gasoline prices still skulking in the neighborhood of $3-a-gallon, despite oil priced above $80-a-barrel, political and economic leaders can pretend a little while longer that things are okay on the real life American scene. But between the dollar tanking in response to the Federal Reserve's Easy-Money-for-Big-Players policy, and the start of the home-heating season, you can be sure we are headed up to the $4-a-gallon range for happy motoring fuel before New Years.
There's also no guarantee that the Fed rate cuts will rescue any big banks, investment houses, or hedge funds. Sooner or later, to either meet redemptions or admit losses, they'll all have to roll out those mortgage-backed securities, CLOs, and other fraudulent items currently hiding in their books, and ask the world what they're worth paying for. The world will answer by wrinkling its collective noses at the odor emanating from these bundles of financial offal, and that will determine whether some of these outfits stay in business or sink into the mire of financial history.
http://jameshowardkunstler.typepad.com/

Rama, Your article misses one big point; the decrease in value of the US dollar-Chinese yuan does affect China's holdings, because their value has dropped against all of the world's major currencies. yu casa, me casa; we're both poorer, and everything we buy from Europe or other developed countries has become more expensive for Americans - and the Chinese. This is a world marketplace; not in isolation.

Seems like everyone speaks German these days in San Francisco.

The other day the Canadian dollar reached equal value with the US dollar.

Not that I thought you were lying, but once I read this I had to see it for my own eyes.

For some reason I find this really troublesome.

I know there used to be a price advantage in buying drugs from Canada, but I wonder how much longer that will last?

You can also buy your meds from Israel for a cheap price.

Milk is $4+/gallon.

But how about covering the S&H?

If your bill is over a certain amount, I'll bet the S&H is free.

I shipped a 1 pound package to Italy last week for $8. I don't know how much more involved medications are, but $8 isn't too much.

The reason I'm a bit concerned is because I shipped some school supplies to Africa (Tanzania) a couple of years ago, and it cost upwards of $50 (more than the cost of the supplies).

Yesss. Ve kontrol ze place.

From Munich?

Rama, That's an excellent article that tries to reveal what happens in the financial markets to hide the true value of the loss. The sub-prime loans that are being shuffled around like peas under the shells to hide them will eventually bite everyone who's involved, and we're talking trillions of dollars.

What's even "funnier" is the way the feds dropped short-term interest rates by half a point, but that really hasn't affected any of the rates being paid by consumers on loans. Yet another shell game.

I think the stock market is heaving its last breath before it starts to strangle from lack of $$$$(air).

Housing is down; consumer confidence is down; and there's no more $$$$ out there for consumers to continue their spending binge.

I took out all of our year-to-date gains from our funds and shifted them into the federal money market funds. We're going to stay neutral until this wild ride passes through for the next quarter to six months when the pundits reveal the truth about there's no more free lunch.

Nice opportunity to convert to cash now that the market is up.

Hi Roxxxanne, The best strategy of money management is to remove your gains when you know the market is higher than what our economic prospects are for the short-term.

The current up-tick in the DOW is based on the half point interest drop, but that has no bearing on consumer's loan rates. It's only psychological, and the market jumps at anything it thinks helps the liquidity problem. Have you heard from any of your banks that your interest rate on your loans are now lower by half percent?

There's no more liquidity now than before the drop; mortgage loans are now more difficult to get, and the drop in housing tells us where our economy is headed. Maybe not today or tomorrow, but soon enough.