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What if the Amerikan Regime redo 1929? [Copy link] 中文

Rank: 8Rank: 8

Post time 2006-6-13 21:19:00 |Display all floors
Mr. Flotsam, Mr. RaymondUSA....what should be our preparedness should the 1929 style depression is unleased on the world?

I reckon, the HIGH DEBT is there. The current Hedge fund Hot Money is doing havoc with countries like India loosing up to 30% of its stock value, other ASIAN countries loosing almost all the gains it made since January 2006 or about 15% lost value!

Now USA is increasing interest rate, Hedge funds are making all kind of commodities priced beyond normal value.......is this a threat?

Would the following action be sufficient.
(1) Asian economies start to appreciate the local currency versus the US$.
(2) Start to use BASKET OF CURRENCY approach in the FOREX RESERVES of individual countries.
(3) Increase money supply so that companies are not squeeze and be able to maintain their credit lines.

I am just wondering whether a 1929 situation could happen again...we must be prepared.


Green Dragon

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Post time 2006-6-15 08:01:28 |Display all floors

They're redoing it NOW

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Post time 2006-6-15 08:21:11 |Display all floors
I'm not sure I agree with flotsam.

Flotsam may not have the correct scenario, but he (or she) is correct that the economic dynamics of today are far different than any time since WW2.  The billions of dollars that go to the Iraq project are financed by China, almost exactly.  Today we received news that inflation is taking off again and the new Fed Chief will have to raise rates.  If he raises too much, then he could step on economic growth.  So the problems of inflation, slow growth, and interest rate levels are coming home to roost.

The markets always reject logic.  If you listen to what people say the market was responding to, then you'll see quicklly that there is never a consistent response to any piece of economic news.  So one day the market will sell off on worries about oil, then the next it will rally on news that a rate increase is on the way.  None of it makes sense in the short run.  And all of the long run scenarios assume that a stable economic framework has been in place for 100 years or more, which isn't the case.

Can someone help me find data that details how much of the world's wealth is held in publicly traded companies that trade on the equities markets, and how much of it is held elsewhere?

龙年顺顺利利

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Post time 2006-6-15 10:58:08 |Display all floors

Reply #1 greendragon's post

Interesting too get the answers........

STAGflation in the USA???

anyone???
What's on your mind now........ooooooooooooooo la la....Kind Regards

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Post time 2006-6-15 12:58:17 |Display all floors

Reply #3 matt605's post

post deleted by Green Dragon

[ Last edited by greendragon at 2006-6-15 12:59 PM ]

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