The Coming Great Global Re-Balancing:

The entire world economy is enormously out of balance in both financial and real economic terms. The great “un-balancer” is the US economy. Its vast current account deficits show this financially and its huge trade deficits show it in terms of who has the real capital plant and who has not! Ahead lies an enormous global financial convulsion as the US economy declines backwards to the size of the output capacity of its own existing real capital plant.

Once that economically inescapable process starts, Asia’s export industries will be flattened wholesale, from China’s to Japan to Taiwan and all the way down to the Southeast Asian economies. Conversely, the economic goods which Asia now sends to the US will no longer be on the shelves in the US to nearly the same extent as before. The REAL living standard of
Americans will fall drastically. Europe too will get hammered from the fall-out, as will the Third World.

The Roaring Twenties was a credit-induced economic event. The Dirty Thirties followed in its wake. The Clinton/Greenspan/Bush boom, the stock market bust, and the real estate blow-off is also a credit induced event. Now, on the economic horizon is an event that will exceed the Thirties.

From: "The Global Report"
2005, The Privateer, Australia

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