Friday, February 15, 2013


I copied this "Quote of the Day".

  • Quote of the Day

    "Many folks seem to think that the dollar going down will magically solve our trade deficit. I disagree. We don't export enough to solve our trade deficit. What we need to do is stop consuming beyond our means and start saving, which is what will be forced upon us eventually." -Bill Fleckenstein

  • When it gets right down to economic fundamentals, the above statement reflects the truth. The dollar going down will cause us to limit what we buy from abroad, or make it ourselves if we want it. But if all currencies are going down, then the dollar is only valued relative to other currencies. And that won't affect the trade deficit...

    But when inflation starts to hurt in the currency manipulating countries, think China, then they will be forced to let their currency rise, limiting their exports and they will "export" their inflation to us. Interest rates will rise around the world, debt will continue to contract, and we will stop buying the crap from around the world that we buy. We will have incentive to save, our savings accounts will actually pay interest. And at some point a US Dollar will hold it's value...

    Finance will no longer be king. Manufacturing will return. Unions and workers will regain power.

    And then we will all be drinking free BubbleUp, and eating Rainbow Stew!


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