Asian Gloom Spreads to Vietnam
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  • Kenny

    Just like the public sector depends on a robust private sector, so do the ‘developing’ economices depend on a vibrant 1st world.

  • Jacksonian Libertarian

    This is not the export economies fault. We have encouraged their currency manipulations, in order to create the American Global Trading System, and uplift mankind with the largest and therefore most efficient market in history (too altruistic sounding?). Their currency manipulations are beginning to crash against the Law of Supply and Demand, in that there is too big a supply of Dollars and keeping their value propped up isn’t working very well any more. It may be time to harvest the Hamiltonian Plan, by paying off all foreign held Treasuries ($4.5 Trillion).
    This would have the following effects
    1. Improve US credit rating by reducing US Debt from $15 Trillion to $10.5 Trillion
    2. Reduce US interest payments by almost 1/3
    3. Give US businesses a price advantage for the first time in at least 4 decades
    4. Increased foreign product prices at the same time the relatively lowering of US prices, will reverse the trade deficit (-$550 Billion) leading to at least 10% additional growth in US GDP over the following 4 years
    5. US businesses are the strongest and best managed in the world, as they are the survivors of over 4 decades of price disadvantage, given a price advantage for the first time in over 4 decades they will quickly gain market share
    6. The US is in Great Depression 2.0, and the normal source of jobs, small business start ups and expansions, is denied to us because the home equity normally use to finance them is gone with the housing bubble. An export driven recovery is all that is left to us.
    7. The American Global Trading System we have sacrificed so much to build is under threat from protectionism, which will grow stronger the longer the economic stress of Great Depression 2.0 goes on.
    8. By paying back our debt we will strengthen the global financial system, reinforce the sanctity of paying your debts, which the EU and the Euro are presently doing serious damage to.
    9. It will put $4.5 Trillion into the hands of our customers, and there is really only one place to spend them. Can You Say “America Sale!”
    10. $4.5 Trillion worth of capital that has to find a new place to be put to work, is just the bullet we need to put a hit on Great Depression 2.0, before it generates Megalomaniacs 2.0

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