Ten, check the trade deficit, which is declining.
Aside from that being a finger in the dike, I fail to see the point.
The fiat dollar, which is debt and thin air, served us well while trust lasted. The globe, however, is necessarily revaluing it. To consider that my personal share of the US economy is something I can cash in above and beyond my personal assets is less than nuts. It’s delusional.
Especially with a hundred billion dollars in credit industry writedowns, the interlinked UK housing industry going near belly up in the last month, real estate resetting by half or less in prime US markets, gold tripling in a handful of years, oil breaking $100 a barrel and the Fed again playing Russian Roulette with plunging rates to appease markets, precisely the problem that got us into all of the afore mentioned fiscal nightmares.
What happens when we’re down to 0% Fed rate because it’s all we can stand to live with fiscally? You simply cannot print huge amounts of cheap credit and call it unlimited growth.
That the trade imbalance is moving a little is relatively irrelevant, although it’s a move in the right direction.
