Re: OT: HP and US dollar

From: John Smith (a_at_nonymous.com)
Date: 12/06/04 

Date: Mon, 6 Dec 2004 16:24:43 -0500

Tom Linden wrote:
>
> The Chinese peg the yaun to the dollar.

For the moment.

The US gov't is urging China to float their currency but China probably
won't do that until they've sucked every bit of production they can out of
the US for long-term strategic geo-political reasons. Only then might they
float the currency. Basically they are using the US consumer to build their
economy and heavily upgrading their strategic armed forces (carriers,
etc...).

There's a saying in boating circles that a yacht is a hole in the water into
which you sink money. Shrub continues to sink money into that hole in the
sand called Iraq.

Since he came to office, the US has had a net swing of nearly $1 trillion in
the annual budget deficit (this years vs. last year of Clinton), and an
aggregate change of nearly $3 trillion.

In Japan at the height of the real estate bubble, average homes in
reasonable proximity to major urban centers became so expensive that
mortgages were unaffordable - the only way average people could afford them
is if they took out 100 year mortgages.

At the present rate, the US is mortgaging its future at a fast and furious
rate. Hope you enjoy Chinese food.

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